The FTSE 100 Closed At A Record High Again

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After registering its record close yesterday, the FTSE 100 closed the week on yet another record high, despite the discouragement of jobs figures from the United States.

The index broke through the 7,700 figure for only the second time on Friday morning, peaking at 7,727 points during lunchtime trading, and closing at 7,724 points, higher than 0.4 percent record close of yesterday.

It was carried higher by United Utilities and Centrica, a utilities giants, which rose 2.2 percent and 3.1 percent respectively.

Meanwhile, in the United States, markets carried on with their rallies, with the Dow Jones lingering above its landmark 25,000 points for the second day in a row, while the S&P 500 grew to 2,734 points, up by 0.4 percent.

The record close was despite official figures revealing that the United States created only 148,000 jobs in December, far lower than the 190,000 that was expected.

The chief market analyst at IG, Chris Beauchamp, stated: “The market shook off a jobs report that was disappointing on the headline number, with the upward revision to November’s number helping to reassure investors.

“While earnings rose in line with forecasts, the lack of any beat on this measure meant that the dollar was only able to chalk up small gains.

“Still, the first week of the year has proceeded in a very similar fashion to 2017, as equities continue to rally despite further outflows from funds.”

Some commentators, however, have been less optimistic. In a note that was published yesterday, Jeremy Grantham, an asset manager who is credited with the prediction of the dot-com bubble of 2000 and the housing bubble of 2007, warned about a “melt-up”, an increase in equities that is driven by investors who do not want to miss out on gains, instead of an upturn in the economy.

In the note, Grantham warned: “Just recently, say the last six months, we have been showing a modest acceleration, the base camp, perhaps, for a final possible assault on the peak.”

Read more: Jeremy Grantham: The Stock Market is Ready For A “Melt-Up”