EBC Markets Briefing | ​British stocks set new high on soaring oil prices

London's FTSE 100 recorded its all-time high close on Thursday, outshining European peers on a boost from energy shares, though concerns about simmering geopolitical developments kept gains in check.

Oil prices surge more than 8% after Israel launched a major pre-emptive strike on Iran, raising fears of broader Middle East conflict. As such the index's rally is likely to pick up the pace.

More than $10 billion in bids for British companies announced this week, according to Dealogic data, showed how the market's low valuations and the stability were attracting large inflow.

So far this year, there have already been 30 bids for UK companies valued at more than £100 million, more than the double of the amount for 2024. Among those to announce takeover offers were Qualcomm and L'Oreal.

The discount between the FTSE 100 and the S&P 500 peaked at about 49.5% in January and is about 41% now. Relative trade certainty also appeals after the UK stuck a deal with the EU and the US in turn.

Barclays said the pound's strength does not seem a headwind as US capitals may seek to grab as much as they can "before things get more expensive and currency tailwinds are still there."

The FTSE 100 has been in a steady uptrend since early April without indicator showing reversal risk. It may well break above 8,900 again soon and gear up for a fresh peak.

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