The FTSE 100 stock market has reached its highest point in ten months, adding more than £60 billion to its total value.
The index added 229 points or 3.5% on Wednesday, closing at 6,841 – its highest point since February 2020 when financial markets first started to panic about the potential impact of the Covid-19 pandemic.
However, it still sits considerably short of its 2020 peak of around 7,500 points.
Market analysts suggested that the results of the US Senate run-off election, which saw the Democrats take control of the Senate, boosted those who deal with the US. It was also buoyed by continued hopes that the rollout of Covid-19 vaccines will soon bring an end to lockdowns and kickstart the recovery of the UK and global economies.
The FTSE 100’s recovery has been considerably slower than that of its major counterparts in the US and across Europe, which have recently been witnessing record rises. Continued uncertainty surrounding the UK’s future relationship with the EU towards the end of 2020 would have added to uncertainty and a lack of confidence in markets.