FTSE's biggest jump since 2003 raises hopes of a bull market

01 May 2009 / by Rachael Stiles
Marking an 11 week high, the FTSE 100 index has risen 8.1 per cent in April, the biggest single rise in one month since April 2003.

On the back of this rise, and yesterday's rise of 1.3 per cent, analysts are now predicting that the UK could be in the early stages of a bull market.

The worst of the financial crisis is now over, some industry experts are claiming, after the FTSE 100 fell more than 31 per cent in 2008.

"All things are in place for the bear market to have ended," president of investments at Fidelity International Anthony Bolton said.

But some analysts fear that there are too many other factors currently at play to allow for a fast recovery, such as the potential swine flu pandemic, suggestions that some banks might still need further injections of capital, and warnings from the IMF that the global economy is not even halfway to leaving this crisis behind.

David Morrison, market strategist at GFT Global Market argued that "Disappointing news is just being ignored, good news is being jumped on as an excuse to get involved," The Times reported.

David Oakley, capital markets correspondent for the Financial Times, said that the UK stock market's biggest rise in six years indicated that the FTSE 100 had entered an official bull market.

There are indeed a number of factors which suggest that the stock market has become more resilient to turbulence and adverse conditions.

"The market rebound has shrugged off poor economic data, deteriorating company results and the swine flu threat," Mr Oakley said.

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