FTSE 100 on course for best January in 15 years
London’s leading share index is on course to record its best January performance since 1998, despite fears the UK economy could fall into a triple-dip recession later this year.
The FTSE 100 has risen 5.7% so far this month, closing up 0.71% or 45 points to 6,339 yesterday’s, driven higher by upbeat US earnings figures.
The ‘great rotation’ out of bonds has been one of the main drivers behind the FTSE’s strong start to the year, despite ongoing economic weakness.
The last time the FTSE 100 had such a strong showing in January was 1998, when the leading index rose from 5,135 to 5,458, representing a 5.9% gain.
However, concerns over the UK’s waning ‘safe haven’ status have hit sterling badly so far this year.
The pound has lost around 5% against the euro in 2013, putting it on track for its worst month since December 2008. Sterling ended trading below €1.16 yesterday.
This article was first published on Investment Week