FTSE 250 hits record as recovery strengthens

THE FTSE 250 has hit a fresh record high amid a brightening coronavirus picture in the UK.

The mid-cap index, home to more domestically-focused companies such as Marks & Spencer and Wetherspoons, rose 145.52 points yesterday to 23,866.01.

The benchmark has now risen 86pc since a low of 13,078.21 in March last year, when fears over the Covid-19 pandemic led markets to fall sharply.

The index has made gains of over 16pc this year as the recovery gathered pace and a flurry of takeover bids boosted stocks.

Sentiment among traders has improved this week as coronavirus cases in China retreat.

The full US approval of the PfizerBioNTech jab has also helped to soothe some concerns in the City and on Wall Street.

But the FTSE 100 of blue-chip stocks has fared less well. It gained 16.76 points to 7125.78 yesterday but remains almost 10pc below its record high reached in 2018.

Oil was also on the march, rising back above $70 a barrel having dipped to $65 last week.

Brent crude fell below $20 early last year as lockdowns around the world hit demand. But it has recovered steadily since, boosting stocks including BP and Shell.

But investors will nervously be looking at Covid cases around the world amid fears the Delta variant could spiral out of control.

The meeting of central bankers at Jackson Hole in the US this week could spook the markets as the Federal Reserve in particular mulls when to start withdrawing emergency support from the economy.