FTSE 100 Hits Record Highs Amid Global Market Optimism

The London FTSE 100 stocks index reached record highs on Tuesday, following the trend of major global peers hitting all-time peaks this year amidst cooling inflation. The positive sentiment was driven by easing Middle East tensions, hopes of interest-rate cuts, and anticipation of key US inflation data and major earnings releases this week.

The FTSE 100 surged to 8,076.52 points, surpassing its previous record of 8,047.06 set in February last year. However, analysts noted the index's slower growth compared to US and European counterparts in the first quarter of 2024. The recent gains were attributed to the weakening of the pound against the dollar, benefiting British multinationals with significant foreign earnings.

Global markets also saw gains, with Paris and Frankfurt markets boosted by improved eurozone business activity. Wall Street opened higher, with investors eagerly awaiting Tesla's first-quarter earnings and closely monitoring other companies' financial statements for strong results and positive outlooks.

Spotify shares surged after reporting increased paying subscribers and operating profit, while General Motors saw a rise in profits driven by North American strength. Key data releases from Washington this week will shed light on the Federal Reserve's rate-cutting plans, particularly focusing on US GDP and inflation indicators.

The easing of tensions between Iran and Israel continued to impact oil prices, while major indices like Nasdaq Composite, Nikkei 225, Hang Seng Index, and Shanghai Composite posted gains. West Texas Intermediate crude oil prices dipped slightly to $81.52 per barrel.

In conclusion, the global markets remain optimistic amid positive economic indicators and corporate earnings, with investors closely monitoring key data releases and geopolitical developments for future market trends.