Summary:
London's FTSE 100 hit an all-time high on Thursday, led by energy shares, but geopolitical concerns limited further gains compared to European peers.
London's FTSE 100 recorded its all-time high close on Thursday, outshining European peers on a boost from energy shares, though concerns about simmering geopolitical developments kept gains in check.
Oil prices surge more than 8% after Israel launched a major pre-emptive strike on Iran, raising fears of broader Middle East conflict. As such the index's rally is likely to pick up the pace.
More than $10 billion in bids for British companies announced this week, according to Dealogic data, showed how the market's low valuations and the stability were attracting large inflow.
So far this year, there have already been 30 bids for UK companies valued at more than £100 million, more than the double of the amount for 2024. Among those to announce takeover offers were Qualcomm and L'Oreal.
The discount between the FTSE 100 and the S&P 500 peaked at about 49.5% in January and is about 41% now. Relative trade certainty also appeals after the UK stuck a deal with the EU and the US in turn.
Barclays said the pound's strength does not seem a headwind as US capitals may seek to grab as much as they can "before things get more expensive and currency tailwinds are still there."
The FTSE 100 has been in a steady uptrend since early April without indicator showing reversal risk. It may well break above 8,900 again soon and gear up for a fresh peak.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
EUR/GBP rises above 0.8500 as soft UK data boosts BoE rate cut bets, while hawkish ECB remarks provide support for the euro.
2025-06-13
As the decline of US dollar hegemony intensifies, US-China trade tensions ease but tariffs stay high, raising global economic risks.
2025-06-13
Gold has surpassed the euro as central banks increase reserves, seeking safety amid rising geopolitical tensions and economic uncertainty.
2025-06-12
