Extraordinary Stock Surge Sets New Records for Foothold Company
Stock market investors are cheering as the FTSE 100 just broke its longest-ever winning streak. The blue-chip index soared 1.2% on the day, rising to 8596.35, with trade tensions easing and President Trump repeating calls for interest rate cuts.
This 15-day streak started after a turbulent period when President Trump imposed tariffs on China, causing the FTSE 100 to plummet. Now, it's clawed back almost all its losses and is just 275 points away from its record close in March.
The relief is evident, with the index jump of 11.9% since April 9 being a welcome sign for pension savers, investors with ISAs, and others with investments in the stock market. The European Dax and Cac also saw gains, while the Dow Jones and Nasdaq climbed on Wall Street as well.
These gains came after Beijing expressed an interest in discussing trade with the US again, and Trump demanded lower interest rates following weaker than expected US hiring data. The latest nonfarm payrolls rose by 177,000 in April, lower than the 185,000 increase in March, indicating a cooling US economy amid the trade war.
Emmanuel Cau, an analyst at Barclays, said that the potential end of the trade war is more significant than the fear of recession. He added that "Team Trump's pivot towards a more conciliatory approach has managed to bring calm back."
Similar market movements occurred in 2019 when the FTSE 100 experienced a winning streak, although the specific reasons weren't detailed. Typically, economic optimism, reduced geopolitical tensions, and strong corporate earnings could contribute to index growth. In 2019, global economic growth and Brexit uncertainty were concerns but did not spur a significant collapse in the FTSE 100. Instead, it seems that the UK market maintained its resilience, demonstrating its ability to bounce back in the face of adversity.
- Stock market investors are reaping the rewards of a 15-day winning streak on the FTSE 100, with the index reaching 8596.35, thanks to easing trade tensions and President Trump's calls for interest rate cuts.
- This remarkable streak began after a turbulent period when President Trump imposed tariffs on China, causing the FTSE 100 to plummet.
- The relief is palpable among pension savers, investors with ISAs, and others with investments in the stock market, as the FTSE 100 has clawed back almost all its losses and is just 275 points away from its record close in March.
- The European Dax and Cac also saw gains, while the Dow Jones and Nasdaq climbed on Wall Street, mirroring the FTSE 100's performance.
- These gains came about after Beijing expressed an interest in discussing trade with the US, and Trump demanded lower interest rates following weaker than expected US hiring data.
- According to Emmanuel Cau, an analyst at Barclays, the potential end of the trade war is more significant than the fear of recession, and the change in Trump's approach has brought calm back to the finance and business sectors, including personal-finance investments.
