Yep, the FTSE 100 has hit a record high again

"After its record close yesterday, the FTSE 100 hit yet another intraday high this morning as traders looked ahead to the US' monthly jobs figures.

The index smashed through the 7,700 figure for a second time this morning, peaking at 7,712 points in early trading.

It was carried higher by utilities companies Centrica and United Utilities, which rose 1.9 per cent and 1.4 per cent respectively. Meanwhile, Admiral had the opposite effect, falling 4.5 per cent.

The rally wasn't just on this side of the pond: yesterday the Dow Jones hit 25,000 points for the first time after figures on private sector jobs suggested today's highly-anticipated non-farm payroll figures, which measure job creation across the US, will be much higher than anticipated.

"European markets continue to make further gains, with the sheer scale of the global rally demonstrating how investors are embracing all things equity and risk related, basking in the euphoria of synchronous global growth," said Rebecca O'Keeffe, head of investment at Interactive Investor.

"Equity markets, which were already strengthening well in advance of Trump’s $1.5tn tax cut, or indeed a prospective US infrastructure bill that could form the centrepiece of 2018 legislation, show no sign of any stress, with new record highs an almost daily occurrence."

Melt-up risk

However, some commentators have been less optimistic. In a note published yesterday, asset manager Jeremy Grantham, who is credited with predicting the housing bubble of 2007 and the dot-com bubble of 2000, warned of a "melt-up", a rise in equities driven by investors who do not want to miss out on gains, rather than an upturn in the economy.

"Just recently, say the last six months, we have been showing a modest acceleration, the base camp, perhaps, for a final possible assault on the peak," warned Grantham in a note.

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