Can FTSE 100 Recapture 8,700 after Strong Start?

The FTSE 100 is pushing up towards 8,700 this morning, with gains of 0.62% propelling the index 53 points to 8,691. Having fallen below the level on Friday, the bulls will be looking to recapture the level and look upwards after a strong start to the year that has seen the Footsie gain 5.23%.

AO World shares are a notable gainer, up 4.56%, as THG, Fevertree Drinks and Shell also drive markets forwards.

Fevertree Drinks’ shares (LON: FEVR) are up by 7.38% at 800p, driven by strong US sales growth and significant improvements in margins. The company’s underlying earnings for 2024 saw an impressive rise of 66%, reaching £50.7 million. Despite a 3% decline in UK sales to £111.1 million, Fevertree’s US sales climbed by 9% to £128 million. Additionally, Fevertree’s brand revenue growth accelerated, with a 7% increase in the second half of the year, contributing to a 4% annual rise.

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Shell, another major driver of the FTSE 100’s performance, revealed cash flow from operations of $54.7 billion, surpassing their target of $46 billion. Shell planned to increase its LNG sales by 4-5% per year and enhance production by 1% annually through to 2030. To support shareholder value, Shell intends to raise shareholder distributions to 40-50% of their cash flow from operations, with a focus on share buybacks.

Psychologically, the 8,700 level could be considered a key point for UK market sentiment, and a push above that holds on volume may well set the trend for the coming weeks.