London Daily

Focus on the big picture.
Sunday, Jul 06, 2025

FTSE 100 hits 8,000 points for first time as recession fears ease

FTSE 100 hits 8,000 points for first time as recession fears ease

The index of largest companies listed on the London Stock Exchange reaches its highest level
Britain’s FTSE 100 share index has passed 8,000 points for the first time, as fears of a global recession ease.

In an afternoon surge, the index of the largest 100 companies listed on the London Stock Exchange hit 8,003.65 points, a new record.

It edged down again at the end of Wednesday, closing at 7,997 points, a gain of 0.55% over the day.

Shares were boosted as traders welcomed Wednesday’s release of better than forecast inflation numbers, raising hopes the Bank of England will not be bounced into hiking its rate further than markets are anticipating. The consumer prices index fell to 10.1% for January, down from 10.5% in December and more than the 10.3% that had been expected.

The FTSE 100, which is dominated by multinational companies, has been lifted in recent weeks by optimism that the global economy could fare better than feared this year. The index was also helped on Wednesday by a stronger US dollar, following a big increase in US retail sales in January.

Mining and oil giants benefiting from a commodities boom and sky-high energy prices have also helped propel the index higher over the last year, although the biggest contributors to the FTSE’s gains on Wednesday were consumer-facing companies, including betting firms. Barclays bank was the worst performer, dropping nearly 8% after reporting lower profits.

The reopening of China’s economy, as Beijing relaxes Covid restrictions, should boost demand and ease supply chain disruption, economists say. On Monday, the European Commission lifted its growth forecasts, saying it no longer expects the European Union to fall into recession in 2023.

Hopes that inflation has peaked also lifted stock markets this year, on hopes that central banks could stop increasing interest rates soon. Inflation fell in the UK and the US in January.

Victoria Scholar, head of investment at Interactive Investor, said: “Despite the doom and gloom, the FTSE 100 continues to reach fresh record highs, touching the key 8,000 technical and psychological milestone for the first time in its history.

“The landmark level underscores the divergence between the macroeconomic fundamentals and more forward-looking market prices with equities pricing in the prospect of peak interest rates and tempering inflation.”

Shares in the oil companies BP and Shell have rallied this year, as both reported record profits for 2022 due to the jump in energy prices after the Ukraine war.

The FTSE 100 hit its first record high in more than four years in early February.

The index was created in January 1984, beginning at 1,000 points.

During 2022 it rose by almost 1%, defying the wider slump in global stock markets last year.

“Last year’s outperformance for the UK’s large-cap index stood the index in good stead ahead of the revival in risk appetite and return to positive sentiment across global equities,” said Scholar.

“The FTSE 100’s resilience last year can be attributed to its lack of tech giants, allowing the index to avoid 2022’s tech wreck. Oil and mining giants also benefited from 2022’s commodity boom while British lenders enjoyed a tailwind from tightening monetary policy,” she added.

UK stocks have also benefited from optimism that the economy will not shrink as much this year as feared.

The latest UK GDP figures show that the UK narrowly staved off a recession at the end of 2022. The Bank of England has also lifted its forecasts, having previously predicted the longest recession since records began.

Bank of America reported on Tuesday that concerns over a global recession have “melted away”.

Its regular survey of European fund managers found that a net 24% think the global economy will go into a recession over the next 12 months. That’s down from 51% last month and a peak of 77% in November.
Newsletter

Related Articles

0:00
0:00
Close
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
King Charles Plans Significant Role for Prince Harry in Coronation
Two Chinese Nationals Arrested for Espionage Activities Against U.S. Navy
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
×