FTSE 100 hits an all-time high as the 'Santa Rally' gets into full swing - and traders celebrate Trump's US tax reform bill

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The UK's premier share index has passed the 7,600 mark for the first time ever after President Donald Trump's tax bill put investors firmly in the Christmas party spirit.  

The FTSE 100 finished up 78.76 points at 7,603.98, marking the biggest one-day gain in December and a new record high. The last time that the FTSE 100 hit a record high was in early November when it hit 7,562.28 points.

The Senate passed the $1.5trillion tax cut early in the early hours of Wednesday, with Trump hailing his tax cut victory as the start of 'a very special period of time' in America as he promised the reforms would lead to 'jobs, jobs, jobs, jobs.' 

The FTSE 100 finished up 78.76 points at 7,603.98, marking the biggest one day gain in December and a new record high

The jump has also been credited to a market phenomenon called the Santa Rally, referring to a surge in stock prices during the final weeks of December that is often linked to investments of Christmas bonuses as well as anticipation of a further rise in prices at the turn of the new year.

David Madden, a market analyst at CMC Markets UK, said: 'The FTSE 100 is the standout performer in Europe as it reached a fresh all-time high. The market has cleared the 7,600 mark, for the first time ever. 

'Since consumer goods like Reckitt Benckiser, Diageo and Tesco are some of the biggest risers on the day, the Santa rally is certainly under way.'

The UK market outperformed European peers including the French Cac 40 and German Dax which ended the day up 0.6 per cent and 0.3 per cent, respectively. 

The Republican-controlled House and Senate gave final approval to the biggest overhaul of the US tax code in 30 years on Wednesday, sending the sweeping bill to President Donald Trump for his signature.

As part of that bill, the tax rate on corporations will drop from 35 per cent to 21 per cent. Trump previously called the measure 'rocket fuel' for the economy.

Some of America's biggest companies gave workers the Christmas cheer a little early on Wednesday as they passed on some of their winnings from a dramatic corporate tax cut that was also included in the legislation.

The UK's premier share index has passed the 7,600 mark for the first time ever

AT&T said that it will pay $1,000 bonuses to more than 200,000 employees - and promised to make $1 billion in new investments in the United States next year - once a tax reform bill approved by Congress is signed into law.

After AT&T's announcement, other companies followed suit.

On the rise: The FTSE 100 has been rising steadily over the past five days

Reform: President Trump with Republican members of the House and Senate following the passing of the tax bill 

Comcast NBCUniversal said it would award $1,000 bonuses to more than 100,000 workers, 'based on the passage of tax reform' and a recent FCC decision to repeal 'net neutrality' rules.

The cable and Internet giant also boasted that it 'expects to spend well in excess of $50billion over the next five years investing in infrastructure.'

Boeing said it would make a '$300million employee-related and charitable investment as a result of #TaxReform legislation.' 

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