FTSE 100 hits three-week high as records tumble

It's risk-on stateside Thursday as Wall Street's three main indices all made record highs as banks rediscovered their fizz. Markets have been quiet for a few weeks as traders still try to make sense of Trump's presidency. But some knockout results have restored the faith and investors have begun putting money to work again.

Fourth-quarter earnings from French bank Société Générale beat forecasts, largely as provisions for bad loans fell.

In the US, where Trump beneficiaries have rocketed since the election, Goldman Sachs and JP Morgan were back on shopping lists after a brief pullback. Over here, Royal Bank of Scotland, Barclays, Standard Chartered and Lloyds joined the fun, RBS hitting a February high.

Oil stocks are strong, too, after French producer Total made a profit in the fourth quarter and as concerns about profit growth and the breakeven oil price were put to one side. Brent crude established a base above $55 a barrel, pumping Royal Dutch Shell, BP and Tullow Oil all up around 1%.

In the US, the Dow Jones, S&P 500 and Nasdaq Composite have traded higher than ever before at 20,197, 2,309 and 5,722, respectively.

And, offsetting weakness among housebuilders and miners, the FTSE 100 rallied to its highest since mid-January, during which time the blue-chip index has traded a range of just 134 points.

However, coming after a six-week rally worth almost 700 points, it's actually quite a relief and, with the overbought conditions unwinding, there's now a platform for further upside.

Even dull water companies ignored the script, led north by high-yielding Pennon following a bullish update.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.