American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

How far will the FTSE 100 go in 2025? Analysts weigh in

by admin December 31, 2024
December 31, 2024
How far will the FTSE 100 go in 2025? Analysts weigh in

The FTSE 100 had a solid year overall aided by the Labour party’s landslide victory in the general election, and the Bank of England starting to cut interest rates in what collectively helped boost UK stocks.

The UK’s blue-chip index is up 5.35% this year, after reaching an all-time high of 8,474.41 points in May.

While the index’s rise has been more subdued compared to the S&P 500’s nearly 25% year-to-date surge, 2024’s performance marks its strongest showing since 2021, when it surged 14.3%, following gains of 0.9% in 2022 and 3.8% in 2023.

What are investors thinking for FTSE 100 in 2025?

In a recent market outlook survey by broker Jefferies, two-thirds or more than 66% of the respondents thought the FTSE 100 would be higher by the end of 2025, up from just under 50% last year.

Only 8% expected the FTSE 100 to be lower, compared to 22% last year.

Institutional Investors were the biggest swing voters, from 27% fearing it would be lower in 2024, to just 9% thinking the same for 2025, demonstrating their optimism in the market outlook.

Could FTSE 100 hit 9,000 points?

According to brokerage AJ Bell, FTSE could hit 9,000 points by the end of 2025, a roughly 10% jump.

AJ Bell’s investment director Russ Mould says that the “prevailing gloom” has left UK equities appearing undervalued based on earnings and yield metrics.

“Political uncertainty should now be receding in the UK, given the Labour government’s thumping majority, and this offers a favourable comparison with Europe, where coalition administrations now seem to be falling over at a pace to match that of the Conservative Party’s enthusiastic sacking of its leaders, prime ministers, and chancellors in recent years,” Mould says, adding,

The jury may still be out on the new chancellor’s first Budget, but some credit should be given for at least acknowledging the fiscal deficit which faces the country, a topic barely mentioned during the US election campaign and one that is now coming home to roost in France.

UBS has pegged its 2025-year-end forecast for the FTSE 100 between 9,800-9,900, an outcome that will be dependent on higher commodity prices, better global growth, and weaker sterling.

Commodity sectors contribute around 25% of FTSE 100 earnings.

However, UBS’s most pessimistic scenario is of a retreat towards 6,600 and this might take place if persistently high inflation forces the Bank of England to hold rates higher for longer, putting downward pressure on equity valuations and the economic growth outlook.

UBS also said UK equity valuations are not as attractive as they first appear given the reliance on financials and energy at 8.4x and 8.1x respectively.

It sought to highlight that earnings in these sectors could be at risk from weak oil and gas prices as well as falling interest rates.

The post How far will the FTSE 100 go in 2025? Analysts weigh in appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
What Donald Trump’s presidency means for DJT’s future: everything investors need to know
next post
Wizz Air to keep 40 planes grounded through 2026 due to engine issues

Related Posts

Wendy’s will offer $3 breakfast deal as rivals...

May 22, 2024

Stock price forecasts: Rigetti Computing, Upstart, Nikola

January 24, 2025

MAGA memecoin soars 42% as Trump inauguration buzz...

January 6, 2025

Asian stocks close mostly higher: Hang Seng up...

May 21, 2025

Sensex index slowly forms a bullish pattern, signaling...

March 31, 2025

Asian markets open: Nikkei, Hang Seng dip amid...

April 16, 2025

QQQ ETF stock forecast as Nasdaq 100 index...

March 9, 2025

Charter Communications stock may crash after earnings

January 31, 2025

SoundHound stock price analysis: Is SOUN a good...

November 6, 2024

Tesla asks shareholders to vote again on Musk’s...

April 19, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,573)
    • Investing (2,700)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved