Streak of consecutive gains by FTSE 100 sets record since 2017's stretch.
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The FTSE 100 is currently experiencing another surge, marking a a breathtaking run of 12 days of positive performance - its best streak since 2017. This impressive turnaround is thanks to a more relaxed atmospheric tension surrounding the US tariff policy.
As of now, London's primary index is up 0.12% from the opening bell, maintaining an unwavering stance. Russ Mould, investment director at AJ Bell, commented, "The FTSE 100 stays steady as corporate earnings pour in."
Today's results from significant UK firms haven't exactly been peaches and cream. GSK and Smith & Nephew have soared over 2% following their trading updates, but Taylor Wimpey took a hit due to worries about reduced profit margins.
The FTSE 100 stands more than 10% higher than its post-Trump tariff slump record. Susannah Streeter, head of money and markets at Hargreaves Lansdown, notes, "There's a carefree vibe to the FTSE, with the index shrugging off world economic jitters and charging ahead."
Streeter explains that, amid ongoing tariff negotiations, the defensive stocks listed on the British index seem more attractive compared to the volatile US assets. However, the FTSE 100 has still fallen by 1.87% overall in April, due to the 10% tariffs slapped by Trump, as well as anticipation for a cooling global economy.
Meanwhile, the US's S&P 500 has extended its longest winning streak since November, jumping over 11% from its low for the month. The S&P briefly dipped into a bear market on 7 April but has since clawed back most of its losses, only incurring a meager 0.9% loss for April. The Dow Jones index, which focuses on established firms, is projected to end April with a 3.5% loss, while the Nasdaq is expected to wrap up above where it began this month.
US markets have been on a downward spiral before Tariff Day, largely due to doubts about theAI boom after the launch of Chinese competitor DeepSeek and a general preference for UK and European stocks.
immediately following the announcement of Q1 GDP data, futures in the S&P 500 plummeted 1.4%, spurred by fears of a possible American recession.
In 2019, both the FTSE 100 and the S&P 500 enjoyed significant winning streaks, influenced by factors such as monetary policy, corporate earnings, global economic trends, and political stability. These wins impacted markets by boosting investor confidence, fostering interconnectedness between markets, and potentially setting the stage for overvaluation if not in line with economic realities. In recent reports, both indices have demonstrated resilience amidst market volatility, influenced by factors such as economic indicators and global market sentiment.
- The breathtaking run of the FTSE 100, seen in its 12-day streak of positive performance, is a remarkable feat, last seen in 2017.
- The unwavering stance of the FTSE 100 is being maintained as corporate earnings pour in, with stocks like GSK and Smith & Nephew soaring, but others, such as Taylor Wimpey, facing reduced profit margin concerns.
- Despite the current positive trend, the FTSE 100 has still seen an overall decrease of 1.87% in April due to the imposition of 10% tariffs and global economic jitters.
- The S&P 500, on the other hand, has managed to claw back most of its losses and is projected to end April above its starting point, following a downward spiral before Tariff Day largely due to doubts about the AI boom and a general preference for UK and European stocks.
- The announcement of Q1 GDP data led to a plummet of futures in the S&P 500, spurred by fears of a possible American recession, underscoring the impact of economic indicators on these markets.
- The resilience demonstrated by both the FTSE 100 and the S&P 500 in recent reports, amidst market volatility, can be attributed to factors such as economic indicators and global market sentiment, and these factors may potentially set the stage for overvaluation if not in line with economic realities.
