15/09/2010
Experts have predicted that the FTSE will rise 10% this year for British blue-chip stocks, as the FTSE 100 index soared past the 5500 mark.
According to The Independent, city experts believe that it could hit 6000 before the year ends, thanks to robust half-year earnings and a pick-up in the paces of global merger news.
The news will banish any fears of a double-dip recession and bolster the already growing confidence of Britain's businesses.
"The global economy is recovering - all we've seen is a loss of momentum, not a relapse, and it's likely that next year the recovery will continue," explained Mike Lenhoff, market strategist at Brewin Dolphin. "I wouldn't be surprised if the market did end the year near to 6000 - we'd need some serious piece of bad news to knock the market for six now."
This is the strongest bit of news to date, which supports claims that the economy is recovering. It's expected this will encourage businesses to consider sales finance as a way of generating some cash in order to expand their business. With the FTSE expected to keep on growing, the sooner entrepreneurs invest in their businesses, the sooner they'll reap the returns.
Mr Lenhoff added: "If the captains of industry felt downbeat about the prospects for their operating income, it's highly unlikely they'd engage in acquisitions."
Laura Nineham