FTSE 100 punches through 6,000 mark

City A.M. Reporter

FTSE 100 smashed through the 6,000 barrier in trading today, as investors were heartened by the US fiscal cliff deal.

The UK’s leading share index closed up 2.2 per cent today at 6,027, driven primarily by large rises in mining and financial shares, and mirroring sharp gains on global markets.

US Congress backed the fiscal cliff deal late last night – ending days of drama just before financial markets opened for the new year – as the House of Representatives passed the bill by 257 votes to 167, preventing huge tax hikes and spending cuts that threatened to push the US over the “fiscal cliff” and into recession.

Today’s rally means that the FTSE 100 is up nearly 15 per cent since its June 2012 lows.

"With the taboo level of 6,000 now broken, the question is whether markets can hold on to their gains and push higher," said David Jones, chief market strategist at IG Markets.

"The euphoria might fade somewhat in the coming days, but with non-farm payrolls on Friday investors might look to keep their powder dry for the rest of this shortened trading week."