FTSE 100 surges over 8,000 points before US data dampens mood; British Gas owner Centrica’s profits triple – as it happened

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

The UK’s blue-chip share index is set to hit new record highs today, after hitting the 8,000 point mark for the first time on Wednesday.

The FTSE 100 hit 8,003.65 points yesterday, before closing just below the 8k milestone at 7997.83 (a new closing high), as hopes grow that inflation may have peaked.

Shares are set to keep rising today, as global stock markets continue to be cheered by optimism that central banks may ease their interest rate increases soon.

Jason Hollands, managing director of online investment service Bestinvest, says the UK market is increasingly seen as a bargain by international investors.

A number of large investment banks are taking a positive view on the opportunity, Hollands says, while some private investors have been “heavy sellers of UK equity funds for several months”, probably ground down by relentless gloomy news on the domestic economic outlook.

However, the FTSE 100 is not a barometer of the UK domestic economy, given its dominance by multinationals such as banks, mining companies and oil giants.

Hollands explains:

It is a highly international index, which makes around 79% of its revenues overseas. This includes around 13% of revenues earned in China, and so these companies should also be a beneficiary of the expected rebound in the Chinese economy this year following its ditching of draconian COVID restrictions in December. “In recent years, many investors have dismissed UK blue chip shares as ‘boring’, lacking exposure to exciting sectors like technology and social media. But in a more trying economic environment, solid companies churning out reliable dividends are well worth considering. Boring is the new sexy. With an abundance of exposure to energy, commodities, consumer staples and healthcare companies, the FTSE 100 looks well placed for the current environment.”

Since the start of January, the FTSE 100 index has gained 7% – which wouldn’t be a bad return for a full year.

Other European markets have made an even more sparkling start, with Germany’s DAX and France’s CAC having gained around 12%.

We get new US producer prices data and jobless claims figures later today, which may move the markets – if they change investors’ views of the path of inflation and interest rates.