Footsie closes above 6,600 mark for first time since October 2007 as it embarks on seven-day winning spree By Harry Glass London's leading share index has closed above the 6,600 barrier for the first time since the financial crash, extending its winning run into a seventh straight session. The FTSE 100 closed up 32.2 points at 6,625, the first time it has closed above the 6,600 threshold since late 2007. . The UK benchmark has risen around 12 per cent this year, and 17 per cent over the last 12 months, as interest rate cuts and injections of liquidity by central banks around the world have lifted equity markets, despite the stuttering global economy. On the up: The FTSE 100 index has risen by 17% over the last 12 months Investors today looked to a meeting of G7 finance chiefs for reaffirmation of policymakers' commitment to more economic stimulus - the key driver of equities' 11-month long rally - and for clues on possible further measures. European equities scaled fresh five-year highs today too, bolstered by strong earnings numbers from the world's largest steelmaker ArcelorMittal and telecoms group BT. Germany's Dax and France's CAC 40 were both up on the day and the FTSE Eurofirst 300 index tested levels not seen since June 2008, getting a boost from fresh money as investors in several European countries returned after a public holiday. Nick Xanders, head of European equity strategy at BTIG, said: 'I still think the fundamentals (aren't good enough) to warrant the current stock prices, (but) the central bank intervention has more than offset that.' Underscoring investor optimism, Lipper data showed that US-based funds invested some $213million of new money in European equities in the week to May 8 - the strongest in-flows in nearly four months. 'You are just getting people dragged in, a lot of unwilling buyers,' said Stephen Walker, head of equities research and market strategy at Ashcourt Rowan. The retail investors are jumping on the bandwagon, and the institutional investors are under a lot of pressure. They can't sit on high cash balances earning nothing forever if everything is going up. 'It feels like it's going to end horribly at some point, but it probably could keep going for some time.' Rise and fall: FTSE 100 chart Friday's gains were led by companies which posted forecast-beating earnings, with ArcelorMittal jumping 6.3 per cent and telecoms group BT surging 11.7 per cent - also to five-and-a-half year highs. French carmaker Renault, meanwhile, rose 2.6 per cent after its alliance partner Nissan posted a jump in quarterly profits thanks to a weaker yen that boosted the Japanese currency value of its foreign sales. And US Federal Reserve Chairman Ben Bernanke is expected to leave the door open to further bond buying in a speech this afternoon, after conflicting comments about the effectiveness of quantitative easing from some Fed officials this week. Alastair McCaig, IG market analyst, said: 'The FTSE has been dragged to new five-year highs by buoyant European markets, which continue to climb. US markets closed mildly lower yesterday and have done little to give the FTSE a sense of direction, but this has not hindered enthusiasm in European markets. Japanese stocks scaled another five-year high too, as the US dollar managed to break above the elusive 100 yen mark, putting the Japanese currency at levels that should boost many exporters. The Nikkei rose 2.5 per cent to 14,450, the highest level since June 2008. McCaig added: 'In Asia, the Nikkei continues to demonstrate the fine form shown in April, and with the dollar finally breaking the psychological 100 yen level, the Japanese index could be set for new highs. 'This year's anticipated currency wars have so far failed to materialise, though with the yen continuing to weaken and five countries along with the ECB cutting interest rates already this month, things appear to be heating up in the currency markets.' For many European companies, the weak yen is bad news. The yen weakness is a headwind for German exporters as they might lose competitiveness. We also see some margin pressure in Germany with rising wages, which could hurt these companies,' said Emmanuel Cau, strategist at JP Morgan. Shares around the world are being boosted by central bank monetary stimulus measures. The dollar had stalled for a month after reaching a high of 99.95 yen in early April. 'The market is returning to where it should be, to buying the dollar - failed attempts to break the 100 yen had lightened positions and cleared the way for such a move,' said Hiroshi Maeba, head of FX trading Japan for UBS in Tokyo. He added that this will now signal a buying opportunity and markets may test 102-103 yen in coming weeks. The currency moves had diverging impacts on Asian shares. Australian shares erased most of their early gains after hitting a fresh five-year high earlier, as strong gains in the banking sector and companies with a strong exposure to the US market rallied on the back of the dollar's gain. But the yen's decline hurt South Korean shares, which slid 1.6 per cent on concerns the weaker yen would curb exporters' competitiveness against their Japanese counterparts. Chinese shares were subdued. Investors will also have been cheered by manufacturing and trade figures released today for the UK. The recent recovery in the manufacturing sector showed signs of continued momentum after output rose for a second month in a row in March. Factory production improved 1.1 per cent on a month earlier too, the Office for National Statistics (ONS) showed. And the UK's deficit on trade in goods and services was estimated to have shrunk to £3.1 billion in March from £3.4 billion in February. Nida Ali, economic advisor to the Ernst & Young ITEM Club, commented: 'The marginal narrowing of the overall goods trade deficit in March is welcome, especially given the sharp widening of the oil deficit. 'And today's release contains signs of an initial recovery in UK trade. For instance, the close to 10 per cent increase in exports to non-EU countries in March, with strong demand from China and the US, provides evidence that the much-needed rebalancing of UK exports towards faster growing nations is continuing. After struggling for much of the past five years, services exports have been edging up over the past couple of months. Given that services account for about 40 per cent of UK exports, a recovery in services exports is vital if the UK is to improve its overall trade performance.