UK FTSE 100 to reach 7,500 by end-2020 – Reuters poll

According to a Reuters poll of 22 fund managers, investors and analysts taken in the past two weeks, the UK’s benchmark index, the FTSE 100 is expected to see limited gains by end-2020 despite the UK PM Johnson’s promise to get a Brexit done.

Key Findings:

“Britain’s top stock index is expected to reach 7,500 points by the end of 2020, about 1.4% higher than Monday’s close

An increase in government spending in the Tory manifesto is also expected to give an extra boost to the economy and help prop up domestic-focused stocks.

But because the majority of the FTSE 100 constituents earn their revenues abroad in foreign currencies, they have missed out on some of the improvement in sentiment towards Britain PLC.

Moreover, the rise in the pound constitutes an accounting burden and weighs on their valuations.”

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