How FTSE 100 just made a 10-week high
19th April 2018 11:18
After a near-two-week pause following a rally from the March low, the has finally broken out of a frustratingly tight 130-point range to hit a 10-week high.
With renewed momentum, and right in the middle of historically the second-best month of the year for stockmarkets, 7,400 is a realistic possibility.
A modest unravelling of sterling's latest advance against the dollar is a clear boon for UK-listed overseas earners, and a strong start to US results season is steering focus back from politics to market fundamentals.
That's positive for stocks while data points to rapid growth both in earnings and the global economy.
Source: interactive investor Past performance is not a guide to future performance
Brent crude just topped $74 for the first time since 2014. Despite the influence of US shale, Saudi Arabia still calls the shots on global oil markets, and it's increasingly obvious the Saudi's are comfortable with oil at $80 or more.
Add a drop in weekly US oil reserves to the mix and the only way for crude prices is up. Saudi bullishness should be no surprise given it must somehow bankroll Crown Prince Mohammed bin Salman's expensive reforms and modernisation at home.
We had confirmation this morning that horrible weather kept shoppers out of the stores in March.
Even an early Easter could not prevent a slightly worse-than-expected 0.5% drop in retail sales last month, excluding fuel.
But it was the Beast from the East that did real damage to petrol sales, which fell more than 7%, dragging total retail sales down 1.2%, double the City's guesstimate.
However, rising wages and falling inflation can only be a good thing for consumer confidence, increasing the odds of a reversal of fortunes on the high street. With other variables at play, however, it's unlikely to be the quick fix former favourites , , and desperately need.
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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
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