Finance
FTSE 100 share index hits four-month high as European markets rally
European stock markets are rallying, with the UK's FTSE 100 reaching a four-month high of 10,701 points and Germany's DAX hitting a record high.
Key takeaways
- Investors are rotating out of chip stocks and into old economy companies
European stock markets are rallying, with the UK's FTSE 100 reaching a four-month high of 10,701 points and Germany's DAX hitting a record high. The market surge is driven by a rotation out of high-valuation chip stocks into 'old economy' companies, a weaker-than-expected US jobs report that dampens interest rate hike fears, and falling oil prices. Brent crude has dropped to $72 a barrel from $126 in April, aided by normalizing shipping flows through the Strait of Hormuz under a fragile 60-day US-Iran ceasefire.
In their words
“The latest US jobs data confirms labour market disappointment but we’re nowhere near the stage where the Fed will reach for the monetary policy scissors to start cutting.”
“June was a spectacular month for the old-economy index that is the Dow Jones, which saw it rally sharply even as the surge in the Nasdaq hit a wall.”
By the numbers
- 10,701
- FTSE 100 peak points reached during the morning
- +0.4%
- FTSE 100 morning gain
- $72
- Brent crude oil price per barrel
- $60
- Citigroup's forecast Brent crude price per barrel by year-end
- 258
- Total Strait of Hormuz transits including dark voyages
How it unfolded
- FTSE 100 hits previous high before Iran war
- Brent crude oil peaks at $126 a barrel
- Weekly Strait of Hormuz transits reach 258
- Daily Strait of Hormuz traceable journeys rise to eight
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Common questions
- Where can I read the original report?
- Read the full report at guardian_business.
