The FTSE hit a new all-time high this morning (15 May) after rallying oil prices and Chinese infrastructure demand pushed the London share index to 7,458.
Oil prices began to climb following Saudi Arabia and Russia agreeing to continue cutting oil production into March 2018. According to commentators the joint decision is an attempt at ‘stabilising the market’. Meanwhile, president Xi of China’s plans to build infrastructure and transport links throughout Asia and beyond has seen shares in mining companies rise.
The FTSE 100 has been enjoying a particularly strong run in recent months, despite warnings that Brexit could derail the market. This has been largely due to a weaker pound causing shares to become cheaper for overseas investors to buy..
Mining and commodities giants with exposure to oil have been the biggest winners today, with Glencore and Anglo American rising by 2.9%, and Antofagasta by 2.71%. At the other end of things are Next and Rolls-Royce Holdings, who both dropped by more than 2%, while TUI saw even more substantial losses of 4.1%. Oil companies BP and Royal Dutch Shell rose by 1.5% and 1.2%, respectively.
At the time of publishing the FTSE 100 is on track for a new record closing high, having settled at 7,444 by 14:00. But while the strength of the index’s successes has pulled the whole index up, the majority of FTSE100 companies – 60 in total – have fallen today. Meanwhile, the FTSE 250 has grown by a modest 0.01 per cent today to 19766.7 – just shy of the record high 19827, which it hit on May 9.
This article was written for our sister magazine, Money Observer.