FTSE 100 Surges After Positive PMI Data
Data just released in the UK unexpectedly showed that services growth surged last month and as a result the FTSE 100 has climbed to its highest level since December 1999.
On Wednesday the FTSE 100 added 44.41 points and closed at 6,873.58. The growth came after the purchasing managers’ index climbed to a 10-month high of 60.5 in August from 59.1 in July.
Far higher than the 58.5 that economists had predicted.
Some stocks in particular have been doing extremely well this year, Shire Plc has grown 73% and drug maker AstraZeneca Plc grew 28%. Nonetheless, the FTSE 100 is still behind its European counterpart. While the index has gained 1.8% this year, it is less than the 5.1% that the Stoxx Europe 600 Index has grown.
Furthermore, Britain’s economy has recovered faster and better than previously thought from the recession. Now most analysts are expecting this upwards trend to continue and some are even speculating that the FTSE 100 may break the 6900 barrier. The index has come extremely close to this level in recent days, at one point hitting 6898.62, but is yet to break through it.