A Rare Winning Streak for FTSE 100 Investors
Remarkable Run of Fanciful Feet Smashes Previous Records
It's a celebration for stock market investors, as the FTSE 100 has smashed its record with an unprecedented 15-day winning streak. This incredible run has been a much-needed booster for those with their funds tied up in the stock market.
The surge in London's blue-chip index comes as trade tensions between the US and China start to ease, and US President Donald Trump keeps talking about the need for interest rate cuts. On May 5, 2025, the FTSE 100 raced 1.2% higher, or 99.55 points, to reach 8596.35. This impressive climb was preceded by 14 other days of consecutive positive trading sessions – setting a new record in the index's history.
Tracing back to April 8, 2025, the rally has seen the Footsie soar by an impressive 11.9%. This rise is sure to bring smiles to the faces of savers, with pensions, ISAs, and other investments in the index. The index has now nearly made up for all the losses following Trump's "Liberation Day" tariffs on April 2, 2025, and is only 275 points shy of its record close of 8871 in March.
This impressive spree wasn't just limited to London, as other European markets followed suit. The Dax index in Frankfurt climbed by 2.6% and the Cac in Paris rose by 2.3%. On Wall Street, the Dow Jones Industrial Average saw a 1.5% climb, while the tech-heavy Nasdaq 100 rose by 1.7%.
The recent moves were triggered by Beijing's announcement that they were evaluating an offer made by the US to start trade talks. Meanwhile, Trump continued to pressurize the Federal Reserve to cut interest rates, following a slowdown in US hiring in April.
However, despite these positive signals, the US economy is still cooling off as the trade war continues. US nonfarm payrolls rose by 177,000 in April – down from the 185,000 increase seen in March. This is yet another sign that the US economy is feeling the pinch of the ongoing trade war.
With the Bank of England likely to cut UK rates to 4.25% within the next week, investors might want to keep an eye on this development. Emmanuel Cau, an analyst at Barclays, believes that the easing of trade tensions is overshadowing fears of recession. He said, "Team Trump's pivot towards a more conciliatory approach has managed to bring calm back."
Overall, the longest winning streak in the FTSE 100's history is a promising sign for investors, despite the uncertain geopolitical landscape. However, investors should maintain a cautious approach and keep their eyes on global trade policies and broader economic conditions.
- The FTSE 100's 15-day winning streak has been a relief for investors with funds in stocks and other investments.
- The surge in the FTSE 100, reaching 8596.35 on May 5, 2025, was a result of easing trade tensions between the US and China and Trump's calls for interest rate cuts.
- The upward trend in the FTSE 100, with a 11.9% increase since April 8, 2025, has been beneficial for savers with pensions, ISAs, and other investments tied to the index.
- Other European markets, such as the Dax in Frankfurt and the Cac in Paris, also followed this positive trend, while Wall Street's Dow Jones and Nasdaq 100 also saw gains.
- The recent moves in the stock markets were triggered by Beijing's potential consideration of a US trade talks offer and Trump's continued pressure on the Federal Reserve to lower interest rates.
- Despite the positive signs in the stock markets, the US economy is still experiencing a slowdown due to the lingering trade war, as showed by a lower US nonfarm payrolls increase in April compared to March.
