Stock market index FTSE 100 on course for record-breaking consecutive ascents.
Catching a 15-Day Winning Streak: The FTSE 100 Breaks Records
The FTSE 100 is on the verge of making history. If it manages to close in the green on Friday, closing for the 15th consecutive trading session, it will surpass its previous record of 14 days achieved in 2017.
In the early trading, the index experienced a nearly one percent surge, with companies rebounding on the back of impressive first-quarter results.
Natwest, for instance, saw a nearly three percent rise after outperforming analyst profit expectations, pocketing an impressive £1.8bn. The boost was attributed to a surge in mortgage lending as Brits rushed to beat the stamp duty deadline, along with a rise in trading income from the volatile first-quarter market.
Shell, the FTSE 100's third-largest constituent, also saw an almost three percent increase. This surge followed Shell's 14th consecutive quarterly buyback, despite a drop in profit during the initial three months of the year due to plummeting oil prices linked to geopolitical uncertainty.
Mining stocks were among the strongest performers on Friday morning, as metal prices soared on hopes of lower tariffs between China and the US. Anglo American, Antofagasta, Glencore, and Rio Tinto all saw considerable gains.
Meanwhile, the FTSE 250 climbed one percent in early trading, but traded broadly flat later. If it manages to notch a gain, it will mark its longest winning streak since 2020, with eight consecutive days of growth.
Russ Mould, investment director at AJ Bell, commented, "The FTSE 100 is poised to extend its winning streak following signs of a potential de-escalation of the tariff stand-off between US and China, giving investors renewed hope. The Asian and US markets showed substantial gains overnight, further strengthening market confidence."
Back from the Brink in the Face of Tariffs
Global markets took a significant hit in early April after President Donald Trump imposed sweeping tariffs on the US' trading partners. The FTSE 100 plunged five percent on the day China announced reciprocal tariffs against the US. The index hit a low of 7679.48 on April 9 as trade war tensions intensified.
However, after Trump's announcement of rolling back on levies, markets began to recover. In Europe, Germany's Dax and Cac 40 in Paris were up 1.5 percent on Friday morning. US markets, while experiencing a rocky road to recovery, gradually rebounded.
In a post on Truth Social, Trump blamed former President Joe Biden for market woes, stating, "This is Biden's Stock Market, not Trump's. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our country will boom, but we have to get rid of the Biden "Overhang". This will take a while."
Although the Dow Jones and S&P notched small gains, they were still in the red for the month, with the tech-heavy Nasdaq suffering a two and a half percent fall since the beginning of the year.
- The FTSE 100's current winning streak might extend further, considering the potential de-escalation of the tariff stand-off between the US and China, boosting market confidence.
- The performance of stocks in the FTSE 100, such as Natwest and Shell, has been influenced by factors like impressive first-quarter results, mortgage lending increases, and dividend buybacks.
- In the world of finance and investing, politics also plays a significant role, as evidenced by the impact of trade tariffs on global markets, including the FTSE 100.
- The recovery of markets, initially shaken by trade tariffs, can be linked to news of tariffs being rolled back, as well as positive updates in general-news like hope for lower tariffs between China and the US, impacting industries like technology and mining.
