Traders are starting 2017 in positive mood driving the FTSE 100 to record highs above 7,200 amid sterling weakness and positive economic data out of China.
Shares takes a look at how the index has performed on the first trading day of the past few years and whether there are any signposts to performance for the rest of the year.
CHINESE WHISPERS
In 2016 investors were unnerved by a potential slowdown in the Chinese economy and the FTSE started the year firmly on the back foot, down 2.4%. However, a strong second half, with Brexit-driven sterling weakness acting as a catalyst, helped the index to a near 15% advance for the 12 months as a whole.
In 2015 and 2014 declines of 0.3% and 0.4% respectively were harbingers for weak performance. In 2015 the FTSE fell 5% as the market firmly hit the panic button on China. The year before a commodities sell-off was chiefly to blame.
BRIGHTER DAYS
On the first day back in 2013 the markets charged more than 2% higher on relief that an eleventh hour deal had been agreed to address the US fiscal cliff. This was the prelude to an excellent year for the index which advanced nearly 14%, backed by financial stimulus on both sides of the Atlantic.
In 2012 the index started off in a similarly positive vein thanks to positive manufacturing data out of the European Union and US. After volatile year it ended up 9% higher, again supported by the largesse of central bankers and as fears over the Greek economic crisis began to recede.
