FTSE 100 highs and lows

Even so, the FSTE 100 in an important index, when it is riding high, a mood of confidence often comes with it. It would be odd indeed if the UK economy enters recession later this year, while the FTSE 100 hits a new record.

The FTSE 250, by contrast, has much higher correlation with the UK economy. In the wake of the EU referendum result, the index fell sharply from 17,333 at close of play on the day of the referendum to 14,967 just a few days later. But the index has climbed back, and yesterday closed at 17,265.

In the short term, even the correlation between the FTSE 250 and the UK economy is weak. But in the medium term the link is stronger, and right now the markets seem to be saying that corporate Britain has not suffered the hit from the Brexit vote that the media headlines might suggest.