The FTSE 100 index hit a 14 year high on the London stock exchange yesterday and looks set to keep rising.
Monday’s close was the second-highest ever recorded by the index and has prompted optimistic predictions for a record high in the near future.
London’s index of leading shares – the top 100 companies listed on the London Stock Exchange – finished up 27.8 points, or 0.4%, taking them to their highest close since December 30, 1999 at the height of the dotcom bubble.
The London market was lifted by a rally on Wall Street, where the S&P 500 hit a record high before falling away to close at 0.62%, the Guardian reported.
American experts fear stocks in the US are beginning to look overvalued and may disappoint in coming months.
The UK predictions are more positive however, with some economists predicting the FTSE 100 will hit 7000 points in the next few months. The index has been elevated by a £49bn cash-and-shares payout from Vodafone going directly into investor’s pockets, prompting a renewed confidence.
Companies are also feeling the benefit of the improving market confidence, with a ‘flurry’ of share sales over the recent months. The renewed confidence in business investment could also have a positive effect on small businesses and startups who rely heavily on shareholders and financial investment.