The UK stock market saw a surge as the FTSE 100 closed at its highest level in over a year, buoyed by modest economic growth and heightened global tensions that impacted commodity prices.
Despite ongoing concerns about the economy’s fragility, signs of recovery appear imminent as GDP growth continued into February.
1. FTSE 100 Achieves Milestone
The index closed at 7995 points, marking its highest level since February 2023, nearly reaching the record high set that year.
2. GDP Growth Fuels Optimism
The UK’s GDP grew by 0.1% in February, signalling a potential end to the recession that began last year, as forecasted by NIESR.
3. Impact of Global Tensions
Rising tensions in the Middle East and related spikes in oil and precious metal prices have notably influenced the market, particularly benefiting mining and energy stocks.
4. Sector Performance
Energy stocks, including BP and Shell, showed significant gains amid higher oil prices, with Brent Crude exceeding $90 a barrel.
5. Bank of England Criticism
A recent report criticised the Bank of England’s forecasting methods as outdated, raising concerns amid ongoing economic challenges.
6. Market Outlook
Despite the economic growth, the IoD expresses concerns over the economy’s persistent fragility, suggesting that the recovery may be uneven.
