Stock market index FTSE 100 nearing record-breaking consecutive victories
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The FTSE 100 is on the verge of setting a new record, with a potential 15-day winning streak in sight. If it manages to close in the green on Friday, it'll surpass the previous record of 14 days achieved back in 2017.
The index has been surging since early trading, with companies rallying on the back of first-quarter results. As of now, the index is up nearly one percent.
Natwest is leading the pack, up nearly three percent as the market opened, thanks to their Q1 earnings that beat analyst expectations, raking in £1.8bn. The growth was fueled by increased mortgage lending due to the stamp duty deadline rush and a surge in trading income from the market volatility.
Meanwhile, Shell, the third-biggest constituent in the blue-chip index, has seen its shares rise nearly three percent. This growth is attributed to the oil giant's 14th consecutive quarterly buyback, even though Q1 profits took a hit due to weakening oil prices.
Mining stocks are also performing strongly, with metal prices soaring on hopes of lower tariffs between China and the US. Anglo American, Antofagasta, Glencore, and Rio Tinto have all seen gains of nearly two, over one, nearly one, and nearly one percent, respectively.
The FTSE 250 is also up one percent in early trading, but trading has since broadened out to be relatively flat. If it manages to notch a gain, it will mark its longest winning streak since 2020 of eight days.
Investment Director at AJ Bell, Russ Mould, commented, "The FTSE 100 is extending its winning streak due to signs of a potential de-escalation of the tariff stand-off between the US and China. The strong gains in Asia and on Wall Street last night, helped by strong earnings from Microsoft and Meta Platforms, have given investors a real boost."
UK Markets Outshine US in Recovery
Global markets took a hit in early April following President Trump's imposition of sweeping tariffs on trading partners. The FTSE 100 dropped five percent on the day China announced reciprocal tariffs against the US. The index dropped to a low of 7679.48 on April 9, as trade war tensions escalated.
However, after Trump's rollback on levies, markets began to recover. In Europe, Germany's Dax and Cac 40 in Paris were up 1.5 percent on Friday morning. On Wall Street, the US markets had a rocky road to recovery, with Trump's erratic rhetoric continuing to spook investors.
Stocks slumped after GDP data revealed that US economic growth fell 0.3% in the first three months of 2025. In a post on Truth Social, Trump attributed the market woes to former President Joe Biden, stating "This is Biden's Stock Market, not Trump's." He added, "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."
The Dow Jones gained 0.2% on Thursday, but was down over three percent for the month. The S&P was also down one percent for the month. The tech-heavy Nasdaq has tumbled 2.5% since the beginning of the year.
Insights:
The recovery of the FTSE 100 can be primarily attributed to easing global trade tensions, strong corporate earnings, domestic economic resilience, and technical momentum. Specific factors include the potential de-escalation of U.S.-China tariffs, the U.S.-Ukraine mineral deal, strong earnings from Shell and NatWest, a surge in retail sales, and the Index nearing its March 2025 record high.
- The FTSE 100, currently on a 15-day winning streak, might surpass its previous record of 14 days set in 2017, if it closes in the green on Friday.
- Brits are interested in the stock market, as companies in the FTSE 100 have been surging since early trading, with gains across various sectors such as finance, technology, and mining.
- The tech sector is seeing growth, with mobile and social media giant, Meta Platforms, reporting strong earnings, which helped global markets to recover from a hit in early April.
- The index is expected to continue its winning streak, as Investment Director at AJ Bell, Russ Mould, stated it's being extended due to signs of potential de-escalation of the tariff stand-off between the US and China.
- Nearly two years after plummeting to a low of 7679.48 in April 2020, the FTSE 100 is nearing its record high of March 2025, reaching this milestone would be a significant achievement for the UK market.
