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On Friday the share index closed up 0.5 percent taking its total value to 7019.53 points. This is a rise of over 2,000 points from March 23 last year when Boris Johnson announced the UK’s first coronavirus lockdown.
Following the Prime Minister’s announcement, the index fell in value to a low of 4,993.9.
Since the crash, the FTSE 100 has increased in value by £532bn giving a major boost to investors and savers.
Hopes for rapid global economic growth are high due to successful Covid-19 vaccine rollouts and encouraging data from the United States and China.
Figures released on Friday showed the Chinese economy grew by a record 18.3 percent in the first quarter of 2021 compared with the previous year.
The FTSE 100 has surged past 7,000 points
The FTSE 100 has risen over 2,000 points since last March’s low
In the US the S&P 500 share index hit a new high whilst the Dow Jones Industrial Average exceeded 34,000 points for the first time.
Traders are buoyed by the $30 trillion (£21.7 trillion) in additional spending by the US government.
This includes $1,400 (£1,000) stimulus payments sent to most Americans by the Biden administration.
Despite surging in value the FTSE 100 remains about 10 percent below the value it held at the beginning of 2020.
Britain’s economic recovery is being boosted by a rapid vaccination programme
This makes it something of an international laggard with the Dow, S&P, German Dax and French CAC 40 indexes all having moved beyond their pre-pandemic levels.
However the FTSE 250, which is more domestically focused, hit a record high on Friday and has replaced all its pandemic losses.
Financial experts expect the FTSE’s 100 and 250 to continue rising thanks to record low-interest rates and extra spending from Chancellor Rishi Sunak.
Speaking to the Daily Telegraph Nick Peters, a Fidelity International portfolio manager, commented: “As the global recovery becomes more entrenched, fuelled by continued fiscal stimulus and ultra-loose monetary policy, we think this should translate into continued positive UK equity market performance.
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World growth has been boosted by successful coronavirus vaccine programmes in a number of the world’s advanced economies.
In the US nearly 40 percent of the population have received at least one Covid-19 jab whilst for the UK the figure is 49 percent.
Israel has fully vaccinated over half its population and has recorded a sharp drop in coronavirus cases and hospitalisations.
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However, the EU’s vaccination programme is lagging significantly behind causing outrage across the continent.
Mark Haefele, UBS Global Wealth Management’s chief investment officer, expressed confidence the strong market growth will continue.
He said: “As the economic re-opening accelerates in the coming months, we believe the bull market remains on a solid footing.”
The Dow and S&P have both recovered to their pre-pandemic levels
An analyst from Capital Economics added: “We expect oil prices will rise further in the months ahead as the rollout of vaccines and relaxation of virus-related restrictions prompt a leg-up in demand.”
Last month the Chancellor announced the UK’s furlough scheme will be extended until September.
The Government hopes to remove all coronavirus related restrictions on socialising by June 21.
As a result of the vaccine rollout, a Deloitte study found finance officers are now more confident about global economic growth than at any time during the past 13 years.