Going beyond expectations, the FTSE 100 soared to achieve new levels today as it hit its highest in nearly six months, with miners, banks, and builders as key performers welcoming the news of economic stimulus from US Federal Reserve.
The FTSE 100 went up to 90.49 points, or 1.6%, at 5,910.41, having earlier scaled as high as 5,911.70 points by 11.13 am this morning, marking its strongest ascent since March 27.
The FTSE 100 saw top gainers in export-oriented miners, who added around 36 points to the FTSE 100, as strong economic growth prospects were seen at large in the growing demand for metals.
The rally has lifted the FTSE 100 above technical resistance in the 5,873-5,876 area, where it got stuck twice in August, and with 57% of the 90-day average daily volumes traded in four hours, added further conviction to the surge.
Dag Muller, technical strategist at SEB, said, “Breaking the previous high that we had in August, of 5,876, obviously increased the chances to also see the connection to the year high printed on March 14 at 5,989.”
“If you look at the move from the June lows, you can draw some tentative trend channel lines and the upper end of that trend channel coincides fairly well with that yearly high. So … as long as we don’t get any message from the market that it has run too far too fast, I think you should aim at 6,000-plus in this move in the FTSE … within next week.”