FTSE 100 surges to record high as Middle East tensions ease (2024)

FAQs

FTSE 100 surges to record high as Middle East tensions ease? ›

The FTSE 100 has closed at a record high after fears about an escalating conflict in the Middle East eased. London's blue chip index rose 1.6pc on Monday to close at 8,023.87, surpassing the previous record of 8,014 set in February 2023.

The UK stock market rally has caught many by surprise, with the FTSE 100 and Morningstar UK index hitting record highs in recent weeks. A number of factors are driving the gains, including an improving economy, a revival of M&A activity and a fall in inflation.

The blue-chip FTSE 100 index (. FTSE) , opens new tab breached the 8,300 mark to hit a record high of 8,335.68 points and finished 1.2% higher.

The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" /ˈfʊtsi/, is the United Kingdom's best-known stock market index of the 100 most highly capitalised blue chip companies listed on the London Stock Exchange.

As the week closed, the FTSE 100 index hit 8,433 — the highest level it has ever reached — and this is turning into a regular occurrence. The FTSE has now hit 11 all-time-highs over the last month, and it is close to equalling the record set way back in 1984 of 12 all-time-highs within a single four-week period.

Informally, yes, but 'Footsie' is just a nickname for the index that was derived from the sound of the acronym FTSE (Financial Times Stock Exchange). You will not see the name 'Footsie 100' being used formally on our platforms.

Because the total market capitalisation is affected by the individual share prices of the companies, as share prices change throughout the day, so the index value changes. When the FTSE 100 is 'up' or 'down', the change is being quoted against the previous day's closing price.

The FTSE 100 is on track for a modest 0.4% rise at the opening, driven by positive market sentiment and the likelihood of interest rate reductions. At the same time, the mix of corporate updates across the UK paints a complex economic picture as companies navigate the shifting terrain.

The S&P 500 Index and the Dow Jones Industrial Average have also notched records, with the Dow passing the 40,000-point milestone last week. Analysts say a strong economy, moderating inflation, robust corporate profits, and trust in the Federal Reserve are buoying investor confidence and helping stocks rise.

As it stands, PwC remains the largest auditor of FTSE 100 companies, both in terms of number and value, although its share has diminished slightly.

Will the FTSE 100 reach $10,000? ›

According to the latest outlook from The Economy Forecast Agency, the FTSE 100's expected to reach as high as 9,907 by December. But this upward trajectory may continue breaking through the 10,000 point threshold for the first time in history as early as February 2025.

The FTSE 100 is an index consisting of the shares of the 100 biggest companies by market capitalisation on the London Stock Exchange (LSE). You can trade the index's price movements, or buy, sell or short shares of the constituents of the index. How often do FTSE 100 companies change?

The U.S. equivalent of the FTSE 100 is the S&P 500. Though the FTSE 100 tracks 100 companies and the S&P 500 tracks 500 companies, both are considered to be the key indexes in their respective countries that serve as a broader market indicator.

Over the past five years, the FTSE 100's annualised simple return is an inflation-lagging 2.2 per cent, or a full 11 percentage points below the S&P 500's yearly average. But factor in dividends, and the Footsie's annual total return triples.

FTSE 100 companies are typically stable thanks to their size and reputation – but they're not immune from downturns. So it's always wise to spread your risk. You can buy FTSE 100 shares using InvestDirect, our share dealing platform. Fees and eligibility criteria apply.

This suggests that rather than now being 'overvalued', the FTSE 100 index's constituents are more likely to have moved from being “grossly undervalued” to just plain “undervalued”.

No ETFs on US exchanges track the full FTSE 100. You'll need an international brokerage account to purchase FTSE 100-tracking ETFs from UK markets. Most FTSE 100 ETFs are weighted in favor of companies with higher market capitalization. However, some ETFs invest in each company in the index equally.

The top FTSE 100 companies are AstraZeneca, Shell, Linde, HSBC Holdings, Unilever Group, BP, Diageo, Rio Tinto Group, Glencore, British American Tobacco, and GlaxoSmithKline.

London Stock Exchange Group plc is a global provider of financial markets data and infrastructure. Headquartered in the City of London, England, it owns the London Stock Exchange (on which it is also listed), Refinitiv, LSEG Technology, FTSE Russell, and majority stakes in LCH and Tradeweb.

The Bank of England's expectation that inflation will be back around 2% imminently still looks plausible⁶. Falling inflation, the prospect of lower interest rates plus modest economic growth add up to a positive backdrop for both UK shares and bonds.

Is FTSE 100 overvalued? ›

By comparison, the S&P 500 index yields just 1.4%. This suggests that rather than now being 'overvalued', the FTSE 100 index's constituents are more likely to have moved from being “grossly undervalued” to just plain “undervalued”.

Tech titan Apple is worth more than all of Britain's biggest listed companies combined, just two weeks after becoming the first US firm to be valued at $2tn. Investors rushed to buy shares in the maker of iPhones and iPads after it implemented a four-for-one stock split on Monday.