The FTSE 100 has made history, recording 15 consecutive days of gains—its longest winning streak since its inception in 1984.
The index closed at 8,596.35 points, marking a 1.17% rise on the final day of the streak.
This remarkable run comes amid the potential of easing trade tensions between the U.S. and China, with signs that tariff negotiations may commence.
Investors have responded positively, driving up stock prices across multiple sectors. Financial stocks, including Barclays and HSBC, have surged following strong earnings reports, while industrial and mining stocks – such as Rolls-Royce and Rio Tinto – have rebounded.
Despite the impressive streak, analysts caution that uncertainty remains. The FTSE 100 has yet to reclaim its record high from March 2025, and concerns over global trade policies could limit further gains.
However, the index has still outperformed expectations, rising 4.9% over six months and 5.1% over the past year.
FTSE 100 one-month chart
FTSE 100 one-month chart
As investors celebrate this milestone, the question remains: can the FTSE 100 sustain its momentum, or is a market correction on the horizon?
Either way, this winning streak has cemented its place in financial history.
Global markets have been thrown into turmoil following the announcement of sweeping tariffs by U.S. President Donald Trump
U.S. tariffs, which include a 25% levy on imports from Canada and Mexico and a 10% increase on Chinese goods, have sparked fears of a global trade war. Retaliatory measures from Canada and China have only added to the uncertainty, sending shockwaves through financial markets worldwide.
The FTSE 100, London’s blue-chip index, fell by 1.3%, marking its steepest decline since October last year. Across the Atlantic, Wall Street saw significant losses, with the S&P 500 dropping 1.6% and the Dow Jones Industrial Average falling 1.7%. European markets were not spared, as Germany’s DAX and France’s CAC 40 plunged by 3.5% and 2.1%.
Investors are increasingly concerned about the long-term implications of these tariffs. The measures threaten to disrupt global supply chains, inflate costs, and dampen economic growth. Analysts warn that prolonged trade tensions could push the global economy closer to a recession.
The tariffs have also had a notable impact on currency markets. The U.S. dollar weakened against major currencies, with the pound rising to a six-week high of $1.27. Meanwhile, safe-haven assets like gold saw a surge in demand, with prices climbing above $2,900 per ounce.
Oil markets were not immune to the fallout, as Brent crude futures dropped to a three-month low of $70.65 per barrel. The decline reflects growing concerns over reduced demand amid escalating trade tensions.
As the world braces for further economic uncertainty, the focus now shifts to how global leaders will navigate these turbulent waters.
The stakes are high, and the path forward remains uncertain.
The FTSE 100, the UK’s premier stock market index, has recently reached unprecedented new highs, marking a significant milestone in the UK financial world.
On 20th January 2025, the FTSE 100 closed at a record high of 8,548, surpassing the 8,500 barrier for the first time.
This achievement is a testament to the resilience and strength of the UK’s largest companies, even amid global economic uncertainties.
Several factors have contributed to this remarkable performance. Firstly, the anticipation of potential interest rate cuts by the Bank of England has fueled investor optimism. Lower interest rates typically reduce borrowing costs for companies, encouraging investment and expansion, which in turn boosts stock prices.
Additionally, the recent rise in oil prices has significantly benefited major oil companies like BP and Shell, which are key components of the FTSE 100.
FTSE 100 reaching new highs – one month chart as of 22nd January 2025 (08:21)
The banking sector has also played a crucial role in driving the index higher. With full-year earnings reports expected soon strong performance from banks could further propel the FTSE 100.
Furthermore, the index’s composition, which includes a substantial number of companies with global operations, has allowed it to benefit from the weaker pound. A weaker pound makes UK exports more competitive and increases the value of overseas earnings when converted back to sterling.
Market analysts are now speculating whether the FTSE 100 could reach the 9,000 mark in the coming months. While this would represent a significant rise from current levels, it is not entirely out of reach given the current momentum and favorable economic conditions.
However, some caution that the index’s rapid ascent may be followed by periods of volatility, especially as global economic conditions evolve.
In conclusion, the FTSE 100’s recent surge to new highs is a reflection of the robust performance of its constituent companies and the broader economic environment.
As investors continue to navigate the complexities of the global market, the FTSE 100 remains a key barometer of the health and vitality of the UK economy.
The FTSE 100 index comprises the 100 largest companies by market capitalisation. These companies are typically well-established and financially stable, making them reliable dividend payers.
The average dividend yield for the FTSE 100 is around 3.97%.
Here are ten dividend stocks in the FTSE 100
British American Tobacco (BATS) – Known for its high dividend yield, often exceeding 7%. Not an ethical choice.
Rio Tinto (RIO) – A mining giant with a strong dividend history.
Imperial Brands (IMB) – Another tobacco company with a robust dividend yield. Not an ethical choice.
Legal & General Group (LGEN) – A financial services company with a consistent dividend payout.
GlaxoSmithKline (GSK) – A pharmaceutical company with a reliable dividend.
Vodafone Group (VOD) – A telecommunications company with a solid dividend yield.
HSBC Holdings (HSBA) – One of the largest banking institutions with a strong dividend.
BP (BP) – An oil and gas company known for its high dividend yield.
Unilever (ULVR) – A consumer goods company with a consistent dividend payout.
National Grid (NG) – An energy company with a reliable dividend history.
FTSE 250 Dividend Stocks
The FTSE 250 index includes the next 250 largest companies after the FTSE 100. These mid-cap companies often offer higher growth potential and, in some cases, higher dividend yields. The average dividend yield for the FTSE 250 is around 3.30%.
Here are ten dividend stocks in the FTSE 250
Harbour Energy (HBR) – An oil and gas company with a yield of 7.24%.
Tritax Big Box REIT (BBOX) – A real estate investment trust with a yield of 4.76%.
Investec (INVP) – A financial services company with a yield of 6.21%.
Greencoat UK Wind (UKW) – A renewable energy company with a yield of 7.48%.
IG Group Holdings (IGG) – A financial services company with a yield of 5.02%.
ITV (ITV) – A media company with a yield of 6.43%.
Abrdn (ABDN) – An investment company with a yield of 9.45%.
HICL Infrastructure (HICL) – An infrastructure investment company with a yield of 6.37%.
Direct Line Insurance Group (DLG) – An insurance company with a yield of 3.30%.
Drax Group (DRX) – An energy company with a yield of 3.81%.
Passive dividend income
Dividend stocks in the FTSE 100 and FTSE 250 – a basic overview
Buying dividend stocks can offer several benefits to investors – key advantages are…
Regular Income
Dividend stocks provide a steady stream of income through regular dividend payments. This can be particularly appealing for retirees or those seeking passive income.
Potential for Capital Appreciation
In addition to dividends, these stocks can also appreciate in value over time, offering the potential for capital gains. This dual benefit can enhance overall returns.
Reinvestment Opportunities
Dividends can be reinvested to purchase more shares, a strategy known as dividend reinvestment. This can compound returns over time, significantly boosting the value of your investment.
Lower Volatility
Dividend-paying stocks tend to be less volatile than non-dividend-paying stocks. Companies that pay dividends are often more established and financially stable, which can provide a cushion during market downturns.
Tax Advantages
In many jurisdictions, dividends are taxed at a lower rate than regular income. This can make dividend stocks a tax-efficient investment option.
Inflation Hedge
Dividend growth can help protect against inflation. Companies that consistently increase their dividends can provide a rising income stream that keeps pace with or exceeds inflation.
Signal of Financial Health
A company that pays regular dividends is often seen as financially healthy and confident in its future earnings. This can be a positive signal to investors about the company’s stability and profitability.
Diversification
Including dividend stocks in your portfolio can add diversification. They often belong to various sectors, providing exposure to different parts of the economy.
Compounding Effect
The combination of regular dividends and potential capital gains can create a powerful compounding effect over time, significantly enhancing long-term returns.
Psychological Benefits
Receiving regular dividends can provide psychological comfort, especially during market volatility. Knowing that you are earning income regardless of market conditions can help maintain a long-term investment perspective.
Investing in dividend stocks can be a strategic way to build wealth and generate income. However, it’s important to research and choose companies with a strong track record of dividend payments and financial stability.
Conclusion
Investing in dividend stocks from the FTSE 100 and FTSE 250 can be a strategic way to generate passive income while also benefiting from potential capital gains. These indices offer a diverse range of companies, each with its own strengths and dividend yields, making them attractive options for income-focused investors.
These are NOT recommendations – just observations. Go do your research. Interest rates will/do change quickly – go check. Thanks.
Remember to ALWAYS do your own careful and considered research…
The British luxury fashion house Burberry Group was relegated from the U.K.’s FTSE 100 on Wednesday 4th August 2024, amid declining sales and management upheavals, all adding to the challenges of the 168-year-old retailer
This demotion represents a new setback for Burberry, with its share price having plummeted over 53% this year.
Previous CEOs have endeavoured to refine the brand’s aesthetic. With the appointment of Joshua Schulman as the new chief executive in July 2024, a shift in strategy is now indicated.
Burberry is not alone in its waning fortunes. The luxury sector as a whole has suffered from a prolonged downturn in consumer spending amid inflationary pressures and broader economic uncertainty. Chinese luxury consumption has been especially hard hit.
In July, Hugo Boss cut its full-year guidance after reporting a fall in sales, notably in the U.K. and China, while Gucci owner Kering issued a weak forecast recognising a deceleration in China. LVMH revenue also fell in the second quarter on weaker sales.
Burberry’s FTSE relegation confirms a long fall from grace for the luxury fashion icon.
U.S. shares gained on Tuesday 6th August 2024, signalling a tentative stabilisation in global markets after a period of significant declines.
The Nasdaq, known for its tech-centric portfolio, along with the Dow Jones Industrial Average and the S&P 500, all ended the day in more positive territory.
This ‘lift’ came after a period of muted activity in UK and European markets, with London’s FTSE 100 experiencing an initial surge before retreating.
The recent turmoil in the stock market was triggered on Friday 2nd August 2024 by unsatisfactory U.S. job data for July 2024, which indicated an increase in unemployment, raising alarms over a potential recession.
Additionally, there has been growing apprehension that stocks of major technology firms, especially those with significant investments in artificial intelligence (AI), may have been excessively valued, leading to challenges for some of these companies.
The FTSE 100 soared past 8300, reaching a new record high amid busy trading as London markets reopened after the bank holiday.
A catch-up trading session is evident, with mainland-listed stocks having a robust session on Monday 7th May 2024 and continuing to rise. The FTSE reached around 8335 in intraday trading.
Wall Street also experienced another positive session, with the Dow Jones climbing for the fourth consecutive day following the Federal Reserve’s less aggressive stance, and the S&P 500 gaining too. Despite mixed results, earnings have bolstered risk appetite. The low U.S. job count has encouraged traders/investors to take heart that rate cuts will be on the agenda again soon, even if they are now late.
Bank of England
Attention will now turn to the Bank of England (BoE), which faces a decision on whether to guide the market towards a rate cut – the first in four years – or to exercise more patience. The consensus is that it’s premature for a cut this week, with August 2024 being the more likely date, although the Monetary Policy Committee’s (MPC) opinions vary.
Last month the Deputy Governor of the BoE, indicated his readiness to vote for a rate cut with little additional evidence of declining inflation, highlighting the ‘downside risks’ to the BoE’s February inflation forecast. In contrast, the Bank of England’s Chief Economist, expressed a more cautious stance in April regarding the initiation of rate cuts.
Inflation
Inflation is on a downward trajectory, expected to return to 2% in the next few months. CPI decreased from 3.4% to 3.2% between February and March 2024, and core inflation dropped from 4.5% to 4.2%. However, the BoE is likely to await April’s data before taking any decision.
Persistent wage growth of around 6% indicates continued strength in the labour market. Financial markets anticipate a Bank of England rate cut by August 2024, but it is believed the BoE may be prepared to act as early as June 2024, aligning with the anticipated policy move by the ECB.
The UK FTSE 100 stock index has reached a new record closing price on Monday 22nd April 2024
The new all-time high was likely propelled by a weakening pound and reduced tensions in the Middle East. The FTSE 100 has been the laggard for many months.
The index concluded Monday at 8023 points, setting a new record and eclipsing its previous peak of 8012 from February of the preceding year.
At the close, it had risen by 1.62%, with retailers such as, Tesco, Sainsbury’s, M&S and Ocado being among the top gainers of the day.
The shares have gained from the depreciating pound since the London Stock Exchange index includes numerous companies with significant international operations.
A depreciated pound lowers the cost of exported goods for overseas buyers and boosts the value of international business transactions.
Update
On Tuesday morning 23rd April 2024 the FTSE 100 climbed to a new intraday high of: 8080
FTSE 100 5 day chart showing the intraday high of Tuesday morning 23rd April 2024
The FTSE 100 is the index of the 100 largest companies listed on the London Stock Exchange by market capitalization. It is one of the most widely used indicators of the UK economy and the performance of British businesses.
The FTSE 100 had its best week of the year in the week ending 15th September. The index closed at 7,711 points on 15th September 2023. This was the highest weekly gain of 2023.
