FTSE Finally Breaks Record Highs Before Pausing -

FTSE Finally Breaks Record Highs Before Pausing

Apr 23, 2024Jeremy ParkinsonFinance, No picture0

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The FTSE 100 has reached a record high, reflecting the global forces driving commodity prices rather than the performance of the British economy. Despite lagging behind other major indices due to Brexit uncertainty, the calm political situation and stable finances in the UK are turning the tide. The Bank of England’s potential to cut rates earlier than expected is providing a boost to stocks, leading to the FTSE reaching an all-time high above 8000 points.Associated British Foods Plc, a major player in the UK, has seen a significant increase in their stock value, with shares rising by 7.5%, making them the top percentage gainer on the FTSE 100 index. The company, which owns various businesses including Primark, sugar, grocery, agriculture, and ingredients, has forecasted a substantial growth in their annual profits. This positive outlook comes after reporting a 39% increase in the first half of the year, driven in part by improved margins at their clothing chain. With an adjusted operating profit of 951 million pounds ($1.17 billion) and a 2% rise in revenue to 9.73 billion pounds in the six months leading up to March 2, the company’s diversified nature is seen as a buffer against economic uncertainties. Richard Hunter, head of markets at Interactive Investor, attributes their current success to the strength of the Primark business. As a result, the company’s stock has reached its highest level since June 2018. J Sainsbury and Tesco both saw an increase of over 1% in their stock prices, while Ocado’s stock rose by 4.0% following data that revealed a continued decrease in UK grocery price inflation for the 14th consecutive month in April. This decrease was partly attributed to an uptick in promotional activity by supermarkets. Additionally, JD Sports Fashion experienced a 2.0% increase after announcing its proposal to acquire U.S. athletic fashion retailer Hibbett Inc. for approximately $1.08 billion.On the negative side of the ledger, Gold mining company stocks Fresnilo and Glencore are declining as the price of precious metal drops to its lowest level in over two weeks. The shares of gold miners are following the trend of the yellow metal, which is close to its lowest point since April. Spot gold is down 1% at $2,302.02 per ounce due to reduced concerns about a worsening situation in the Middle East and profit-taking.
FTSE Bias: Bullish Above Bearish below 7990