FTSE hits record high amid commodity boost

Joshua Mahony MSTA Scope Markets

Buoyant commodity prices have ensured the FTSE 100 and 250 towards 2018 on a positive note, with strong gains for crude, gold and copper helping drive a UK market outperformance. Meanwhile, the bitcoin recovery seems to have hit the buffers amid a day of selling.

FTSE 100 and 250 hit record highs, as miners lead the charge higher
Bitcoin turns lower after recent recovery
Crude hits 30-month high after Libyan explosion

The FTSE 100 and 250 indices have punched into fresh highs as we head towards the close of 2018, with Donald Trump’s tax reforms proving to carry enough weight to ensure global markets look into the New Year with an optimistic impetus. Today has seen a focus upon the mining sector, with buoyant crude, gold and copper prices driving the commodity heavy FTSE 100 into fresh territory.

With festive volumes notoriously low, traders will be on the lookout for opportunities, and Bitcoin once again proves to be the most volatile market out there. Sharp selling over the past week seems to have abated, with Bitcoin regaining almost 70% of the losses to top $16,000. While previous selloffs have always come at the hands of a significant negative news story, this time it seemed to come out the blue. With Bitcoin moving lower once more today, it seems that some degree of skepticism remains over quite why we saw such heavy losses despite a lack of negative news flow.

Crude prices have hit a fresh 30-month high today, with Libyan production falling 12% after an explosion targeting one of the country’s pipelines impacted exports. The production curbs from OPEC and non-OPEC members have ensured a supportive environment for oil prices, and with recent disruptions to North Sea, Austrian, and now Libyan crude operations, there always seems to be a reason for prices to keep rising.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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