The FTSE 100 rose early on Tuesday as investors cheered the impact of upbeat corporate results.
The FTSE 100 added 46 points to trade at 7,269 in mid morning trade on Tuesday.
“The FTSE 100 made a strong start on Tuesday, lifted by some strong corporate updates and as investors reacted to the fresh records set on Wall Street overnight,” says AJ Bell investment director Russ Mould.
“The sharp falls seen in September when the index fell below the 7,000 mark are starting to recede into the distance. However, investors will remain wary given the ongoing risks around Covid, inflation and a slowing recovery.”
“Strong corporate results are helping with sentiment. Tomorrow’s Budget in the UK and Thursday’s European Central Bank meeting may help return the wider economy to the forefront of investors’ minds. Whether this will be supportive or have a negative impact on markets remains to be seen.”
Whitbread and Reckitt Benckiser
Whitbread and Reckitt Benckiser were significant contributors to the FTSE 100’s gain after both companies released strong updates that pointed to a move towards the resumption of normal trading after the pandemic.
Reckitt Benckiser was the FTSE 100’s top riser after it added 6% in early trade on Monday.
“There’s a lot to like in this morning’s update from Reckitt Benckiser. There is a notable hike in sales forecasts, impressively, every division has outperformed expectations and the company has maintained margin guidance despite the inflationary pressures and supply chain issues which it, like all of its peer group are facing,” said AJ Bell investment director Russ Mould.