FTSE 250 surges to record highs: recovery boosts UK stocks, boosts pension and ISA savers … but good stocks lag behind
Investors are returning money to British stocks as optimism about the UK economy grows.
To boost pension and ISA-owned savers, the domestically-focused FTSE 250 surged to a record high as it eventually peaked before the pandemic broke out.
The index, a barometer of the UK economy, is far superior to the international FTSE 100, rising to 22,182.63 and closing at 22,160.57, 0.76% (166.09 points).
UK Recovery: To boost pension and ISA-owned savers, the domestic-focused FTSE 250 reached a record high as it eventually peaked before the pandemic broke out.
The previous record closing price in January last year was 22,108, before more than 40% crashed as the Covid-19 panicked in the global market.
Recovery began gradually in March last year, but emotions have recovered since November, when the vaccine was shown to work. Investors are now preparing for life after the blockade of consumer-centric stocks with higher bounds.
In the FTSE 250, cruise company carnivals rose 5.4% yesterday, upper crust owner SSP rose 6.5%, shopping center owner Hamerson rose 6.8%, and pub group Mitchells & Butlers. It increased by 3.7%.
SSP’s share has more than doubled since November, hoping that customers will return to train station and airport stores as the economy resumes.
UK funds are also doing well, with investors giving money to expert managers to take advantage of the turnaround.
Among the top performers is the Jupiter UK Midcap Fund, managed by Richard Watts, up 112% from March last year.
Another outstanding performer is the Baillie Gifford Small Companies Fund, which has made a 108% profit over the same period. It is managed by Charlie Broughton.
Wraith Karaf, an analyst at AJ Bell, said: The vaccine has turned everything around. “
However, while the FTSE 250 is becoming more and more powerful, its older brother, the FTSE 100, has not yet fully recovered from the pandemic.
Outstanding stocks closed 61.77 points at 6858.32, but were still slightly below the pre-pandemic peak of 7675 in January last year, reaching a record high of 7900 in May 2018.
Unlike the FTSE 250, the FTSE 100 has a much more international focus, with many miners, banks and oilers making money abroad.
Analysts believe the FTSE 250 needs to rise further, with the UK services industry returning to growth in March, with business activity, new orders and jobs all recovering from the previous month, according to the latest data. ..
The service’s IHS Markit Purchasing Manager index registered 56.3 in March, with scores above the 50 mark showing growth. This is the first time the index has posted more than 50 scores since October.
There is also evidence that recruiters are putting more people into work as companies begin to return to normal as blockades are eased.
Permanent employment opportunities in recent weeks have seen the largest increase in almost six years, but wage rates have risen for the first time in three months, according to accountant KPMG.
US set to “Goldilocks Moment”
According to one of the world’s most powerful bankers, the US economy has regained its vibrancy following the Covid-19 pandemic and is facing a “goldilocks moment.”
JP Morgan Chief Jamie Dimon said the United States could see “rapid and sustainable growth, slow-rising but not-so-large inflation, and rising but not-so-large interest rates.” It was.
Positive outlook: JP Morgan Chief Jamie Dimon (pictured) said the United States “has the potential for rapid and sustainable growth.”
He named such a “Goldilocks” scenario because the economy isn’t too hot, not too cold, and just right, making US debt more manageable and the Federal Reserve interest rates. He said he could start pulling up and reverse quantitative easing without stopping. “Roaring economy”.
He added: This boom could easily plunge into 2023.
FTSE 250 surges to record high: UK stocks rise due to recovery
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