The FTSE 100 continues to fight back after a sell-off in mid-July, rising by 0.28% to 7,126 during the morning session on Wednesday.
“If it can break the 7,217 intraday high seen on 16 June, then the index would be trading at levels not seen since February 2020 when global markets started to crash as the pandemic spread,” says Russ Mould, investment director at AJ Bell.
“Hitting that level looks possible this summer in the absence of any major negative news to trouble investors,” Mould added.
“Sadly, it doesn’t take much to rattle the markets, and there are plenty of reasons to remain cautious, such as many stocks trading on elevated valuations and the Delta variant continuing to cause disruption.”
The UK market on Wednesday was supported by BP extending gains for a second day following yesterday’s results, while banks and housebuilders were also on the menu for investors.
“What’s interesting is how demand for certain industries has remained strong post-lockdowns. There was a feeling that some sectors would see a drop-off as life starts to return to normal, but in many cases that hasn’t happened,” said Mould.
FTSE 100 Top Movers
Taylor Wimpey (3.02%), Legal and General (2.26%) and Prudential (2.05%) are leading the way on the UK index less than two hours into trading.
Just Eat (-2.35%), Fresnillo (-2%) and Ocado (-0.99%) are trailing the pack on the FTSE 100.
FTSE 100
Taylor Wimpey, the homebuilder, has constructed a record number of homes over the past half-year, boosting the company’s revenue levels in the process.
Over the last six months the FTSE 100 company completed 7,303 homes, a substantial increase from 2,771 during the same period a year ago.
The additional 4,500 properties saw its revenue surge by 191.1% to £2.1bn.
Taylor Wimpey also confirmed it raised its full-year profit guidance as the average selling price rose by 7%.