UK stock market closes at one year high
The FTSE 100 today closed at a one-year high with an increase in commodity prices and further hopes for the US economy. This comes at a time when the UK economy would appear to be under more pressure than it has been for some time and the UK currency is being sold down to very low levels. So why is the UK stock market pushing ahead?
It would appear that investors are keen to look overseas at the future direction of the worldwide economy rather than focus on the UK economy which is struggling. It is common knowledge that the US economy will at some stage lead the worldwide economy out of recession and any good news from the US will obviously have an impact upon worldwide share prices. However, there is the potential for the UK economy to move further and further out of sync with the worldwide economy and the US economy in particular. If this were the case then there will come a time when investors may well have to reconsider their positions and we could see some concern leak into the stock market.
There is also the fact that stock markets are rumoured to look between eight months and 12 months ahead which if correct would indicate a more prosperous 2010 than many people are expecting.
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