The FTSE 100 is trading in the futures market at 7,567 points, the highest level since the 20th January 2020. Incidentally, this was just before the market started to get spooked from the initial impact from Covid-19. In the subsequent two months, the index dropped over 2,500 points to trade below 5,000 in March.
In terms of the drivers behind this, we see a few points. Firstly, there’s optimism around the lack of restrictions being imposed on the UK economy over the past couple of weeks. This should act to keep the economy open and flowing. Secondly, commodity prices are running higher, with WTI Crude pushing above $82 per bbl. This is boosting the share price of key oil and mining stocks.
Finally, banking shares are doing well due to higher chances of more interest hikes from the Bank of England this year. some banks are forecasting rates to be as high as 1% by the end of this year.