UK shares ended on a high yesterday as the FTSE 100 hit 5000 for the first time since October last year.
The index of leading UK companies remained above 5000 this morning as investors look to the positive economic news seen over the last few days, including reports that ratings agency Moody's has said it is highly unlikely that Britain's credit rating will be downgraded.
The Nationwide Consumer Confidence Index also points to an increase in consumer confidence as it reports that overall consumer confidence increased last month to the highest level for more than a year.
Whether the FTSE 100 will remain above 5000 for long remains to be seen, commenting, Nick Serff, market analyst at City Index said: "As soon as 5000 was breached we saw investors add short positions to their portfolios, signalling that a stay above 5000 may be short lived."
However, he said: "If the upward trend maintains with investors happy to buy from price dips, there seems little reason why the FTSE 100 cannot break even higher from these levels."
Joshua Raymond, Market Strategist at City Index adds: "The speed of this rally remains an underlying concern. European equities have now rallied between 45 and 55 per cent since March.
"Taking into consideration the speed of the markets recovery and the realism that businesses are by no means out of the water yet, a short term correction may be needed to give the markets a health check."
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