UK Analysts Forecast FTSE To Reach All Time Highs in 2014

It’s the season for 2014 predictions – and one of the most popular calls among analysts is a record-breaking performance by the FTSE 100, the U.K.’s main stock market index, next year.

Many are predicting the index will beat its previous high of 6,950, set back in 1999. While it has never scaled 7,000 before, strategists at Citi forecast it will reach 8,000 next year.

This optimism is not just because the U.K. economy is showing signs of improvement — the Office for Budget Responsibility upgraded its forecast for gross domestic product growth in 2013 from 0.6 percent to 1.4 percent — there is an international aspect to the optimism. After all, 80 percent of earnings by FTSE 100 companies come from overseas, according to Credit Suisse. And 53 percent of the FTSE 100 is held by investors from outside the U.K.

via FTSE 100 set for all-time highs in 2014: analysts

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza