The FTSE 100 hit a record high yesterday after its best summer for nearly a decade.
London’s top-flight stock index climbed 0.5 per cent, or 50.59 points, to finish at 9350.43, surpassing a previous record close in August.
The rally on the final day of September meant the Footsie rose 6.7 per cent over the quarter.
That was the best quarterly performance since 2022 and the strongest for the third quarter – traditionally a sleepy period when much of the City is on holiday – since 2016.
It comes despite renewed fears for the economy, with a new survey from the Institute of Directors showing business confidence at a record low and official figures revealing growth slowed sharply to 0.3 per cent in the second quarter, from 0.7 per cent at the start of the year.
Global stock markets are on the rise in spite of geopolitical turmoil, including fears that the US government is heading for a shutdown thanks to a falling out between Republicans and Democrats in Congress.
London’s top-flight stock index climbed 0.5%, or 50.59 points, to finish at 9350.43, surpassing a previous record close in August
The row left US markets subdued though New York’s S&P 500 is up by more than 7 per cent over the past three months. The Dow Jones is 5 per cent ahead and the tech-heavy Nasdaq is up 11 per cent.
In Germany, the Dax rose 0.6 per cent yesterday. It is down by 0.1 per cent over the quarter though nearly 20 per cent ahead for the year to date.
France’s Cac 40 was up by 0.2 per cent on the day and 3 per cent up for the quarter despite the political turmoil engulfing the country.
The FTSE 100 is up by 14.5 per cent this year, with some stocks having benefited from global uncertainty, notably those focused on gold and the defence industry.
Gold – a traditional store of value during turbulent times – hit a record of more than $3,871 an ounce yesterday.
Its strength has been a boon for miners such as Fresnillo and Endeavour, two the Footsie’s biggest climbers so far this year.
Matt Britzman, senior analyst at Hargreaves Lansdown, said the uncertainty over a US shutdown was ‘helping to fuel the fire beneath gold’s unwavering bull run’.
Meanwhile, defence supplier Babcock and engine maker Rolls-Royce have climbed strongly as European governments bump up arms spending amid the threat from Russia.
The Footsie’s latest milestone came despite continuing fears for the future of the index, which deepened earlier this week as pharma giant AstraZeneca said it would list its shares directly in New York.
Though AZ said its primary listing and HQ would remain in London, the move was seen by some as a potential stepping stone for the £170billion giant to up sticks for Wall Street.
In another sign of London’s woes, figures yesterday showed it had slipped out of the world’s top 20 initial public offering (IPO) market, overtaken by Mexico and Singapore.
The UK market fell to 23rd in a Bloomberg ranking of global IPO venues as funds raised dropped 69 per cent to £184million, the weakest level in more than three decades.
But there are hopes that floats over coming months will help to revive activity, with food maker Princes Group said to be targeting an October market debut in London and Beauty Tech also eyeing a stock offer.
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