Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Resurgent FTSE 100 Kicks Off 2021 With Best Ever Start to a Year

Stock Markets Jan 06, 2021 09:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Resurgent FTSE 100 Kicks Off 2021 With Best Ever Start to a Year

(Bloomberg) -- After long being the pariahs of the stock market, U.K. blue chips are turning in their best start to a year on record.

The FTSE 100 Index has risen as much as 5.7% in the first three sessions of 2021, on track to surpass the previous record set in 2009. This time around, the benchmark is getting a boost from investors piling into economically sensitive sectors as U.S. Democrats closed in on control of the Senate, while a Brexit deal has ended a long period of uncertainty for the unloved shares.

Banks, miners and energy shares pushed the FTSE 100 up for a third day on Wednesday on speculation that a Senate win for Joe Biden’s Democrats will fuel more stimulus that will drive economic growth and inflation. That’s adding to bullishness about the market after the U.K. reached a trade deal with the European Union, even as the nation has gone back into lockdown.

“Markets are clearly preparing for a sharp rise in commodity demand thanks to big green infrastructure plans in Europe and the U.S.,” Joshua Mahony, senior market analyst at IG Group Holdings Plc, wrote in a note. “The sharp rise in upside from FTSE banking stocks does highlight the feeling that the more expansive Biden will provide as much support as necessary to avoid major economic suffering, thus lowering the potential losses that come from job losses and defaults.”

The gains come on the heels of the FTSE 100’s worst annual drop since 2008, and signal a shift in sentiment toward the market that’s been the worst performer among major equity markets since the 2016 Brexit referendum. For investors betting on a global recovery from the pandemic, the cheapness of U.K. equities may be attractive as value stocks are forecast by many strategists to shine in the coming year.

The FTSE 100’s stellar beginning to 2021 means the benchmark is on track to surpass the 4.6% gain seen in the first three sessions of 2009 and is heading for the best start to a year since its creation in 1984, when constituents included confectioner Rowntree Mackintosh Plc, acquisitive conglomerate Hanson Trust Plc and oil & gas producer Britoil Plc.

©2021 Bloomberg L.P.

 

Resurgent FTSE 100 Kicks Off 2021 With Best Ever Start to a Year
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email