The FTSE 100 jumped to new record highs, firmly above the 8,000. Photo: Thomas Krych/ZUMA Press Wire

The FTSE 100 and European stocks were higher this Thursday as the UK blue chip index opened at a new record high.

The FTSE 100 (^FTSE) rose 0.44% to a new record high of 8,033 points at the open, while the CAC 40 (^FCHI) in Paris jumped 0.81% to 7,360 points. In Germany, the DAX (^GDAXI) gained 0.66% to 15,608.

The FTSE 100’s surge to record highs reflects hopes that the world economy may avoid recession amid favourable economic data across the globe. This does not mean, however, that investors are particularly upbeat on the UK economy.

Read more: Barclays profits fall 14% as it launches £500m share buyback

Matthew Ryan, head of market strategy at global financial services firm Ebury, said: “With more than 80% of FTSE 100 revenues earned abroad, we see the move as more of a consequence of growing optimism surrounding the easing in inflation rates and risk of recessions globally, rather than necessarily an improvement in sentiment towards the domestic economy.

“The harsh reality is that with UK inflation still stubbornly high, a recession remains very much on the cards, and that does not present a particularly encouraging environment for British stocks. Indeed, the FTSE 250 index, which has a greater weighting towards British firms, is still trading around 17% off its 2021 highs.

“The recent drop in the value of sterling, which has fallen by more than 2% on the dollar so far this month, can also partly explain the boom, as this boosts the value of earnings from overseas.”

Centrica (CNA.L) led the gains after the British Gas owner reported record profits of £3.3bn boosted by soaring wholesale gas prices after Russia’s invasion of Ukraine and as UK households still struggle with the cost of living.

Shares in Centrica jumped by 5% as investors are cheering its new £300m share buyback plan announced, on top of the tripling of its profits last year.

Standard Chartered (STAN.L)was also higher after it revealed its statutory pre-tax profits jumped by 28% to $4.3bn (£3.6bn) in 2022 and said the reopening of China after the pandemic is giving grounds for optimism this year.



Shares in the Asia-focused bank were up 2.47% as it announced a new $1bn (£830m) share buyback programme and a final dividend payout worth $405m (£336m).

Meanwhile, Brent crude (BZ=F) pushed higher and was trading at around $86/barrel on upbeat demand forecasts from both OPEC and the IEA.

In Asia, Tokyo’s Nikkei 225 (^N225) closed higher, climbing 0.71% to 27,696 points, while the Hang Seng (^HSI) in Hong Kong gained 0.76% to 20,971. The Shanghai Composite (000001.SS) slipped 0.96% to 3,249 points.

Read more: FTSE 100: Glencore announces £5.8bn payout to shareholders after record profit

Across the pond, US stocks capped a choppy session higher Wednesday as investors pondered the outlook for interest rates after economic data showed strong consumer spending and an uptick in inflation across January.

The Dow Jones (^DJI) rose 0.11% to close at 34,128 points. The S&P 500 (^GSPC) gained 0.28% to finish at 4,147 points and the tech-heavy NASDAQ (^IXIC) advanced 0.92% to 12,070.

S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green as trade began in Europe.

Watch:Inflation: Fed ‘has a little more work to do,’ strategist says
J.P. Morgan Asset Management Global Market Strategist Jordan Jackson joins Yahoo Finance Live to discuss Wall Street’s recalibrated bets on the Fed’s peak rate, inflation, a possible Fed pivot, and the outlook for markets.
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