In early trade on Tuesday 2 April, the FTSE 100 index in the UK broke through the 8,000 level, setting a new record at 8,015.60.
ADVERTISEMENTBy the afternoon, however, the FTSE 100 had lost some steam and hovered around 7,948.52.
The blue-chip index was boosted by mining and commodity stocks with shares in BP and Shell both jumping around 3%, supported by higher oil prices.
Shares in mining stocks Fresnillo, Anglo American and Glencore also helped lift the FTSE 100, up 7%, 4% and 3%, respectively.
“The ongoing rise in oil prices amid a tighter supply outlook is a worry for corporates and consumers as it is a major inflationary force,” Russ Mould, investment director at AJ Bell, said.
“A 0.8% advance to $88.08 per barrel puts the commodity price at its highest level since October 2023 and explains why Shell and BP were among the biggest drivers for the FTSE 100 today. Commodity producers account for a large weighting of the FTSE 100 and the index typically does well when these stocks are bid up.
“The FTSE 100 moved 0.6% higher to hit 8,000 in early trading, back to highs not seen since February 2023. That provides a psychological boost to investors and implies that the blue-chip UK index still has some life left in it.” Mould added.
Near market close on Tuesday afternoon, meanwhile, France’s CAC 40 was trading in the red, down 0.95% at 8,128.12, while Germany’s Dax was also lower – down 1.09% at 18,291.38.