FTSE blasts back through 5000

purch

The real economy really doesn't appear to support the current rally IMO.

The UK Economy may be lagging, but a lot of the 'engine' behind the move up over the summer are stocks that don't rely 100% on the UK Economy.

There are plenty of parts of the World where the words 'Credit Crunch' and 'Recession' have yet to hit the street.

bendix

purch wrote: »

The UK Economy may be lagging, but a lot of the 'engine' behind the move up over the summer are stocks that don't rely 100% on the UK Economy.

There are plenty of parts of the World where the words 'Credit Crunch' and 'Recession' have yet to hit the street.

Precisely . . so much of the rise has been in the mining and resources areas. Rangold, Fresnillo, Kazak, ENRC, Rio Tinto . . . these are tiny UK plays which largely ignore the UK economic environment and look, instead, to their core markets like China.

Besides, the fundamental truth about sharemarkets is that they are nothing to do with what is happening in the economy now, and everything to do with what is expected to happen in 6-12 months.

IveSeenTheLight

purch wrote: »

They've certainly changed market terminology recently !!!

BBC report it as "breaks through 5,000 level"

http://news.bbc.co.uk/1/hi/business/8246846.stm

Generali

purch wrote: »

They've certainly changed market terminology recently !!!

They should use double entendres. FTSE Droops by 120 Points to 4860, S&P500 Caresses New Highs in Record Trading, Kraft Importunes Cadbury Shareholders etc.

Jonbvn

bendix wrote: »

More importantly, money has to go somewhere. Billions and billions of pounds of liquidity cannot just sit nowhere. Interest rates look awful, so noone wants to keep money in cash for longer than they have to now we know the world isn't coming to an end. Property? Well, perhaps, but the recession-trailing unemployment story will be seen to have an impact there. That leaves stocks and shares.

& gold by the looks of it

BTW, I do agree it does look like a flight to "assets". Perhaps this accounts for the recent small rises in property prices?

inspector_monkfish

08:00 10Sep09-EUROPE'S FTSEUROFIRST 300 <.FTEU3> RISES 0.3 PCT IN EARLY TRADE AT 990.41 POINTS

08:01 10Sep09-BRITAIN'S FTSE 100 <.FTSE> UP 0.5 PCT, GERMANY'S DAX <.GDAXI> UP 0.4 PCT AND FRANCE'S CAC 40 <.FCHI> UP 0.5 PCT

08:15 10Sep09-Banks, oils lift Europe shares to 11-month highs

LONDON, Sept 10 - European equities raced higher for a fifth straight session and hit a new 11-month peak on Thursday, led by energy and financial stocks, with investors awaiting the Bank of England's decision on interest rates.

At 0706 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.5 percent at 992.53 points after hitting 992.96, the highest level since October last year. The index, which slumped 45 percent in 2008, is up 19 percent this year and has jumped 54 percent since falling to a record low in March.

Energy shares extended gains as crude oil prices <CLc1> rose 1.4 percent on a soft dollar and soothing comments from OPEC. BP <BP.L>, BG Group <BG.L>, Tullow Oil <TLW.L>, Repsol <REP.MC>, Total <TOTF.PA> and StatoilHydro <STL.OL> added 0.3-1.1 percent.

"The markets go from strength to strength. As we reach highs, the herd mentality of investors may well see the markets move further north," said John Murphy, analyst at ODL Securities.

"However, one needs to recognise that markets never move in straight lines, and we are approaching October, historically the month for crashes," he added.
Banks were among top gainers. Barclays <BARC.L>, Lloyds <LLOY.L>, Royal Bank of Scotland <RBS.L>, BNP Paribas <BNPP.PA>, Societe Generale <SOGN.PA> and Commerzbank <CBKG.DE> rose between 0.4 and 4.3 percent.

Investors awaited the Bank of England's rate decision. Analysts expect the central bank to keep interest rates at a record low of 0.5 percent and to make no change to its asset purchase programme to support the economy.

mr_fishbulb

It has now CRASHED back under 5000

Graham_Devon

mr_fishbulb wrote: »

It has now CRASHED back under 5000

Or slightly fallen?!

mr_fishbulb

Graham_Devon wrote: »

Or slightly fallen?!

Well I don't think the volume of trades is high enough to give us any reliable data

gman20_2

Lol, everyone on here laughed at me when I wanted to put money into a FTSE tracking isa....
It was 3900 back then.
Didn't do it in the end.