Footsie smashes through 7,000 mark

Published: Friday 20th March 2015 by The News Editor

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The FTSE 100 Index climbed above the 7,000-mark today for the first time in its history.

It came as world markets were buoyed by a small recovery in the price of oil as well as hopeful signs over the Greek debt crisis.

London’s top-flight index has also been lifted in recent days by the prospect of UK and US interest rates remaining lower for longer.

The index had been on the cusp of the landmark after soaring to new highs in the previous session, following on from a Budget-inspired rally earlier in the week.

It comes just weeks after the FTSE breached an all-time high that stood for more than 15 years, since the dotcom era at the end of 1999.

Today it rose as high as 7018.2 points as the price of a barrel of Brent crude – still less than half its value last summer – edged above 55 US dollars.

The rise boosted heavyweights Royal Dutch Shell and BP – a staple of many UK pension funds – by about 1%, with exploration firm Tullow Oil climbing nearly 3% and rival BG Group 2% up.

Sentiment was also boosted by hopes that Greece will agree to reforms to stop it running out of money following the debt-laden nation’s latest talks with the European Union.

Meanwhile, this week has seen signs from the US Federal Reserve that it is in no hurry to raise interest rates while the Bank of England has signalled caution on rate hikes in the UK amid the threat of persistent low inflation.

Published: Friday 20th March 2015 by The News Editor

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