Here's why FTSE 100 hit a record high last night

The share index closed at 6,949.63, beating the previous record close of 6,930.2

The FTSE 100 closed at a record high last night – smashing the previous record set in 1999.

The share index closed at 6,949.63, beating the previous record close of 6,930.2, which was set a couple of days before the year 2000 began.

The peak is thanks to European finance ministers agreeing a reform package for Greece, extending its bailout for four months.

James Bevan, chief investment officer at investment firm CCLA Investment Management, told the BBC more people are investing in the stock market because the interest rate for savers is so low.

He said: “One of the big drivers for the FTSE right now is this expectation that if you hold on to equities [shares] you’re going to get an enormously greater yield than cash rates so lots of people are piling into equities.”

Bookmaker Paddy Power is offering odds on when the FTSE 100 will close on or above 7,500. It’s giving evens for 2015, 2/1 for 2016 and 5/2 for 2017 or later.

The worst year on record for the FTSE 100 was in 2008, when the index fell 31.3% as the financial crisis hit.

Its biggest one day drop was 12.2% in 1987 after Wall Street’s Black Monday sent shockwaves across the Atlantic.

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