The UK benchmark index has kicked off the week in positive territory, reaching a new record high, with investors cheering an easing in the trade tensions between the US and China. In individual FTSE 100 movers, G4S (LON:GFS) is outperforming the broader UK market, following upbeat comments at Kepler Cheuvreux.
FTSE 100 hits record high
As of 12:04 BST, the Footsie had added 61.09 points to stand 0.79 percent higher at 7,839.88. Investors have responded positively to comments by US Treasury Secretary Steven Mnuchin who said that the country’s trade war with China was ‘on hold’.
“The relaxation of trade war tensions has allowed the indices to start the week on a positive note,” Chris Beauchamp, market analyst at IG, commented in a note, adding that pullbacks for the FTSE 100 toward the 7,723-point level “should find buying pressure, and even a dip towards 7,680 and 7,630 may still simply see new buyers emerge”.
James Illsley, UK equity portfolio manager at JP Morgan Asset Management, meanwhile told Reuters that he did not think sentiment towards the UK stock market had changed dramatically over the last two to six months, adding that the blue-chip index’s exposure to international growth was instead the most likely driver.
Individual blue-chip movers
In individual movers, G4S’ share price has gained 1.46 percent 271.40p as Kepler Cheuvreux initiated coverage of the stock with a ‘buy’ rating. WebFG News quoted the analysts as saying that new management’s ‘less is more’ strategy is about to deliver a significant boost to the group’s profitability while putting the security company on a steadier growth path.
AstraZeneca (LON:AZN) meanwhile has added 2.27 percent to 5,360.00p with US regulators approving its hyperkalaemia drug.
The FTSE 100 was 0.56 percent higher at 7,822.51 points as of 12:39 BST on Monday, 21 May 2018.