FTSE 100: third week of gains leaves investors scratching their heads

Share index turnaround of 12% since February contributes to mood of cautious optimism in City

Was that it? The year began with warnings to sell up and hunker down for another financial crisis. But now investors have been left scratching their heads after the FTSE 100 enjoyed its third week of gains to soar back to where it started 2016.

The index rallied 1% on Friday to close at 6,199.43, just shy of the 6,242.32 level at which it opened the year and above the 6,093 where it closed on the first trading day of the year.