New high for FTSE as economies return to growth

The FTSE 100 rose to its highest level of 2009 yesterday, on further good economic news from around the world.

Surprise increases in second quarter GDP for France and Germany buoyed investor sentiment, sending the London stock index to 4755.5 at the close.

Investors bought shares again this morning, sending the FTSE to ? at midday.

The US Federal Reserve’s latest comments, suggesting that the world’s largest economy could be stabilising at last following its credit crunch-induced downturn, was also identified as a factor behind the positive sentiment.

Recent reports of ’green shoots’ have also been issued in the UK, with lenders Halifax and Nationwide both suggesting that house prices had increased.

Joshua Raymond at City Index commented: ’The FTSE 100 has now reached a new ten month high and it seems this upward momentum has no end in sight just yet.

’There was a feeling yesterday that gains were being kept on a leash as investors waited for the Fed’s interpretation of the US economic recovery and now that leash seems to have been let go.’ADNFCR-2318-ID-19313383-ADNFCR