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article imageFTSE 100 sets record on Tuesday but fails to hold it on Wednesday

By James Walker     Feb 25, 2015 in Business
After approval of economic reform proposals submitted by Greece helped the FTSE 100 reach record-breaking levels yesterday, it has fallen back considerably throughout the course of today, with shares in some major companies dropping by nearly 10 percent.
Stock markets worldwide have been taking a long time to recover after the 2008 global financial crisis. The FTSE 100, the share index of the 100 companies on the London Stock Exchange with the highest market capitalization, has grown slower than stock markets in the US and Germany.
Analysts believe that the rise in the FTSE 100 right now may have been helped by savers investing in the stock market because of the low interest rates offered by banks. People have also been encouraged into financial trading through new courses, including ones online.
The index finally broke the previous record yesterday as a consequence of Eurozone finance ministers approving reform proposals submitted by Greece, conditioning a four-month extension of Greece's bailout by other EU countries.
The market closed yesterday at a peak of 6,949.63, beating the record of 6,930.20 on 30th December 1999 at the end of the dotcom boom. A new intra-day record was also set at 6958.89. The previous record was 6,950.60, also set on the 30th December 1999.
Today the market is down 24.90 points to 6,924.73, however. Shares in the Weir Group, a producer of equipment for energy and mining industries, dropped nearly 10 percent as the company announced that 2015 revenues would be hit by the low oil prices worldwide.
Shares in supermarket chain Morrisons rose 1 percent though as a new CEO was announced. David Potts, a former Tesco director, will start on the 16th March and will have the role of bringing the supermarket back into profitability.
Although some are viewing yesterday's record-setting as a benchmark for the recovery of the UK economy, many analysts note that it has taken a very long time to achieve. The previous record has lasted for 15 years and only been broken now.
The FTSE 100 is expected to remain strong for a while against other markets worldwide but further growth could be difficult to achieve in the face of issues such as low oil prices worldwide.
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