Over the last few weeks, there has been a sharp turnaround in financial markets as the United Kingdom is expected to avoid a recession. This turnaround has resulted in global markets rallying, which has been further helped by relaxing restrictions in China and a slide in inflation in the United States.
In particular, the Financial Times Stock Exchange 100 Index, otherwise referred to as the FTSE 100, has grown since the end of 2022. The FTSE 100 started rallying at the start of the year and hit an all-time high on February 3rd, 2023, rising above 7,903 points. This increase is noteworthy as its the first time the shares index has broken its record of 7,877.45 points, set in May 2018.
Shortly after, the FTSE 100 hit another record high on February 8, 2023. The blue-chip shares index hit 7,934.30 points and closed the market at 7,885.17 points the following day. Despite closing below the FTSE 100’s new all-time high, this turnaround is important news for investors and shareholders who are optimistic that global markets are recovering.
A Rallying Shares Index
BP was one of the best-performing companies on the FTSE 100 on Wednesday, February 8, 2023. The oil company increased by more than 3% during the morning trading session, and shares rose to their highest level in four years.
Unsurprisingly, this increase on the FTSE 100 coincides with the company announcing that its profits doubled to nearly $30 billion, or just over £23 billion, in 2022. The company has reportedly benefited from the ongoing Russia-Ukraine crisis, which increased gas prices. With a market capitalisation of around £98 billion, it’s no surprise BP is listed on the FTSE 100. The blue-chip shares index comprises 100 companies with the highest market capitalisation on the London Stock Exchange.
Other companies on the FTSE 100 include Burberry Group PLC and Hargreaves Lansdown. The former is a global luxury brand ingrained in British heritage. The company joined the FTSE 100 in 2008, and Hargreaves Lansdown is a financial services company and investment platform. The company was founded in 1981 and offers traders a range of products and services, such as investment products (lifetime ISA, stocks and shares ISA) and pension products, such as annuities and pension drawdown.
The FTSE 100 is known for its international focus and was created in 1984. Apart from retail brands and financial services, the FTSE 100, sometimes called The Footsie, lists water and power suppliers, supermarkets like Tesco and Sainsbury’s, and industrial groups like BAE Systems. There are also several oil companies listed on the index besides BP, such as Shell, and mining companies like Anglo American.
Over the last six months, global markets have been impacted in several ways, including the cost of living in the United Kingdom and inflation in the United States. However, there is optimism that certain large-cap indexes, such as the FTSE 100, are regaining their bullish momentum. This week’s news of the FTSE 100 hitting an all-time high, backs up these claims.
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