The FTSE 100 just closed above 7,500 points for the first time ever

Jasper Jolly
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The FTSE 100 has surged in the past 12 months (Source: Getty)

The FTSE 100 closed above 7,500 for the first time today, driven higher by miners and pharmaceutical stocks, as well as Vodafone.

The index finished almost one per cent higher, at 7,522 points, with Vodafone putting in the strongest performance, rising 3.9 per cent to 219.5p.

Earlier today, Vodafone announced a £5.6bn loss thanks to currency movements, but it also said it will increase earnings next year.

Miners Fresnillo and Rio Tinto were also among the biggest risers, jumping three per cent and 2.7 per cent respectively, while pharma stocks Shire and Hikma both rose 1.5 per cent.

Meanwhile, having fallen below $1.29 against the US dollar despite inflation data overshooting consensus expectations in the morning, the pound clawed back its losses in the afternoon, rising to $1.2915, 0.15 per cent higher.

Read more: New FTSE 100 record close on back of jump in oil prices

The new high water mark comes after an extraordinary rally in the FTSE 100 over the last 12 months.

The latest leg of the rally has been driven by an improving global outlook, with higher commodity prices in the short term as well as favourable news for growth from the Donald Trump administration in the US.

The index has now rallied by almost 30 per cent from the lows below 5,800 points hit after the EU referendum. That surge was in part caused by the weakness in sterling, which fell sharply against the dollar, increasing the value of UK-listed companies' dollar earnings overnight.

The referendum came at the end of an extended period of weak global growth which saw the FTSE 100 fall to its lowest level since 2012 in February 2016. However, global growth has since picked up, boosting the multinational companies that make up London’s benchmark index.

The rising tide has not been limited to blue chip stocks, with the FTSE all-share index also hitting a fresh record high on Tuesday, continuing a strong rally since the end of 2016 into uncharted territory.

The FTSE 250 index has also hit records as recently as April.

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