Yahoo Finance Late surge for FTSE as stocks rally around the world
WATCH: LVMH update helps CAC 40 to record high
The FTSE 100 (^FTSE) enjoyed a late rally in London on Wednesday as global appetite for equities continued.
Strong US bank earnings, an upgraded outlook for oil demand, and signs of a pick up in demand for luxury goods combined to create a bullish atmosphere in global stock markets.
The MSCI World index (EUNL.DE), which tracks the 50 biggest stocks globally, rose to a new all-time high early in the session. The S&P 500 (^GSPC), Nasdaq (^IXIC), and Dow Jones (^DJI) were all trading at or close to record highs in the US and the CAC 40 broke new ground in France.
The FTSE closed up 0.7% near its highest point of the session. The index was around 60 points shy of the symbolic 7,000 mark. The index was supported by a flurry of buying for oil and mining stocks.
"An upgrade to the IEA’s oil outlook has bolstered oil prices, putting both Brent and WTI on an upward path after a six-week pullback from the highs for the year-to-date," said Chris Beauchamp, chief market analyst at IG.
Brent futures (BZ=F) were up 4.1% to $66.30 per barrel by the close in Europe, while crude futures (CL=F) were 4.4% to $62.82 a barrel. BP (BP.L) and Shell (RDSB.L) both rose more than 3% in London.
In Paris, the CAC 40 (^FCHI) closed up 0.4% after touching a new all-time high early in the session. The French index was boosted by LVMH (MC.PA), which rose 2.9% to a new high after posting strong sales figures showing it was bouncing back from the pandemic faster than expected.
LVMH's bullish updated helped propel Burberry (BRBY.L) 1.2% higher in London on hopes that the rebound in luxury buying wasn't limited to just the French house.
Tesco (TSCO.L) slumped to the bottom of the FTSE 100 after posting a 20% drop in annual profits. Rising costs linked to the COVID pandemic cancelled out surging sales. The stock fell 2%.
In Frankfurt, the DAX (^GDAXI) continued to trade near record highs but traders were reluctant to push it much higher. The index closed down 0.2%.
Momentum continued on Wall Street thanks to forecast-beating results from JPMorgan (JPM) and Goldman Sachs (GS). Goldman was boosted by an SPAC-driven boom in investment banking activity, while JPMorgan boss Jamie Dimon predicted an "extremely robust, multi-year growth" story for the US that would benefit the bank.
The S&P 500 (^GSPC) was up 0.1% by the time Europe closed, looking to build on the record finish reached in the prior session. The Dow Jones (^DJI), which had underperformed on Tuesday, rose 0.6%. The Nasdaq (^IXIC) opened higher but was down 0.2% by the time Europe shut.
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All eyes were on the hotly anticipated float of Coinbase (COIN) in New York. The cryptocurrency exchange became the first major crypto company to list on the Nasdaq on Wednesday as it joined the index through a direct listing.
Nigel Green, chief executive and founder of wealth advisory the deVere Group, called it "a truly momentous day for the cryptoverse."
“Should it hit its private market valuation of $100bn (£72.4bn), it would immediately become one of the 85 most valuable companies in the US."
Coinbase had yet to fully price by the time Europe closed by early indications suggested the company would be valued at close to $94bn.
Bitcoin (BTC-USD) had been rallying in the run up to the float. The world's biggest cryptocurrency hit a new all-time high above $64,000 on Wednesday morning.
Stocks had rallied in China overnight. China's Shanghai Composite (000001.SS) rose half a percent, the Shenzen Component (399001.SZ) jumped 1.5% and the Hong Kong Hang Seng (^HSI) gained 1.3%. The South Korean KOSPI (^KS11) rose 0.4% but Japan's Nikkei (^N225) missed the rally and dropped 0.4%.
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