FTSE 100 hits record high as investors shrug off fresh Middle East tensions
Key Takeaways
- •The FTSE 100 rose to 10,945 at the open, setting a new intraday record before easing later in the morning.
- •The index remained in positive territory despite renewed conflict in the Middle East and rising oil prices.
- •Greggs shares jumped more than 12 per cent after pre-tax profit increased 20 per cent to £76m and the company reiterated plans to open up to 3,500 UK stores.
- •Aberdeen was the biggest early faller even though Interactive Investor inflows helped lift its pre-tax profit 2 per cent to £276m.
- •Rathbones reported nearly £1bn of net outflows as it faces a competition probe linked to compliance shortcomings.
Welcome back to the City AM FTSE 100 liveblog.
On Wednesday, the UK’s blue-chip index surged in early trading to an all-time high, appearing to shrug off the latest outbreak of attacks in the Middle East.
The FTSE 100 reached 10,945 at the market open, surpassing the previous intraday record of 10,934 set in February, on the day before the US and Israel first launched strikes against Iran. The index later gave back some of those gains by midday, but it remained firmly in positive territory. For a market that has spent much of the year moving through shifting signals from geopolitics, commodity prices and company earnings, the new high underlined how the index’s sector mix can cushion it from shocks that weigh more heavily on other markets.
Among the morning’s biggest risers was Greggs, whose shares climbed more than 12 per cent after the bakery chain reported a 20 per cent increase in pre-tax profit to £76m and reaffirmed plans to expand to as many as 3,500 stores across the UK.
Aberdeen was the FTSE 100’s biggest faller in early trading. The decline came despite a rise in inflows at investment platform Interactive Investor, which helped lift the firm’s pre-tax profit by two per cent to £276m.
Rathbones, a rival wealth manager, reported a near £1bn hit in net outflows as it prepares for the consequences of a competition probe linked to compliance shortcomings. The firm was down 0.7 per cent in early trading.
The FTSE 100’s gains earlier in the week came as oil prices fell during a pause in fighting between the US and Iran. On Wednesday, oil prices began to rise again after the US struck Iranian proxies in retaliation for what it called an “attempted surprise attack” on its forces in the Middle East. Even so, UK investors were not deterred by the renewed tensions.
“The FTSE 100 has largely shrugged off events, with energy giants gaining ground on higher oil prices offering support,” said Susannah Streeter, chief investment strategist at Wealth Club.
We will be bringing you the latest market updates and analysis as the day develops.
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