FTSE100 hits 2009 highFrench and German economic revival boosts FTSE100

14 August 2009

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The FTSE 100 index achieved a ten-month high yesterday, following France and Germany's earlier than expected exit from recession. 

The 0.3% growth in Europe's two biggest economies between April and June signaled an end to a year-long slump.

The London Stock Exchange responded with enthusiasm to news of a reversal in fortune for France and Germany's economies, which have benefited from stronger exports and continued consumer spending. 

Investor confidence was also buoyed by positive vibes emanating from the US Federal Reserve about the US economy. By noon the FTSE 100 had risen 1.3% to 4,775.10 points, its highest position since last October.  

A revival in UK manufacturing exports, recent relatively healthy annual reports from the likes of Barclays and HSBC, and the strengthening pound also helped boost the London market.  

For more details on investing on the stock exchange, see the Which? guide to share dealing.

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