Fresh records for FTSE as optimism swirls following growth snapshot
FTSE 100 hits fresh new records – above 10,240, helped by the more encouraging UK economic snapshot.
There’s been a morning turnaround in fortunes for housebuilders as hopes for planning reform mount.
Large retailers Tesco and Marks and Spencer are helping lead the charge higher, amid hopes for domestic spending.
Companies offering stable returns amid potential volatility also among the gainers.
Susannah Streeter, Chief Markets Strategist, Wealth Club
‘’The Footsie has hiked higher to new heights, again breaching fresh records. More optimism is swirling, helped by a calming of geopolitics and more clement conditions for the UK.
With November’s snapshot of economic health more robust than expected, it’s put more spring in the step of listed companies linked to the domestic outlook.
Even some downbeat numbers from Taylor Wimpey have not held back sentiment. After an early dip, shares in housebuilders have resurged in strength, looking past current conditions to a more hopeful future helped by an easing of planning restrictions. Taylor Wimpey noted that there had already been increased momentum in recent planning permissions and there is hope that will continue as fast tracking of applications accelerates.
With the economy wriggling firmly out of recession territory there’s also some expectation it’ll help boost consumer confidence. Marks and Spencer and Tesco are among the top gainers, helped by more encouraging sentiment about spending. With the economy growing, inflation cooling and interest rates have also been cut, it may encourage households who’ve built up nest eggs of savings to be a bit more flash with their cash, supporting economic growth. With clear signs that Budget uncertainty is now in the rear-view mirror, the UK appears to be regaining a reputation of stability. That’s also likely to keep up investor interest in companies offering stable returns even in a volatile market, with utilities, insurers and tobacco giants also among the gainers today.”
