FTSE Rises Above Dotcom Boom After Greek Reform Plan Approval

London’s stock market has hit a record high, breaking through the levels set at the height of the dotcom boom 15 years ago on relief that debt-laden Greece had secured a lifeline from its creditors and increasing belief that the UK’s economic recovery is gaining momentum.

After months of testing the previous record 6950 point mark – which was reached on the final trading day in December 1999 – the FTSE-100 index of the biggest companies on the London stock market hit 6959. It closed the day at 6949, well above the previous closing record of 6930 – the level at which the index ended the 20th century.

Investors pushed the FTSE 100 to new heights after tensions eased in the eurozone following the move by the European parliament to give Greece a four-month extension to its €240m (£176bn) bailout. It also came as the OECD praised the chancellor, George Osborne, for his economic plan and what it described as the “remarkable” number of people in work.

Janet Yellen, the head of the US central bank, the Federal Reserve, also boosted sentiment. Appearing before lawmakers on Capitol Hill on Tuesday she said there was little sign of interest rates rising in the US despite a strengthening in the economy.

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza