Investors discover new love for the FTSE 100

The FTSE 100 continues to outshine most of its peers with its performance this week, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 clocks up another record
Outside of the Nikkei, boosted by the US-Japan trade deal, the winner this week has been the FTSE 100. Institutions might be chary of putting more money to work in the US despite the bounce, but the FTSE 100 provides an ideal combination of valuation and dividends, making it far easier to make a case to cautious investment committees. Lloyds’ boost to its payout only burnishes this appeal yet further.
Trade deal news dries up
After the Japan news earlier in the week and reports of an EU-US rapprochement yesterday, today has been quieter, leaving stocks to digest earnings and the ECB decision. Neither of these have provided much fuel for fireworks, but it shows that for the moment that progress on tariffs is valued much more than earnings. US stocks continue to demonstrate remarkable momentum, with each new move higher dragging in more institutional flows in a relentless performance chase.
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