FTSE 100 Seen Hitting Fresh Peak in 2017 as Hedging Costs Slide
- Strategists expect the British index will climb to 7,350
- FTSE 100 trades at lowest since July 2015 to Euro Stoxx 50
The share price of the FTSE 100 index is displayed on an illuminated rotating cube in the atrium of the London Stock Exchange.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
The FTSE 100 Index rally that’s made the U.K.’s stock market one of this year’s biggest gainers in the developed world has more to go, whatever the Bank of England says on Thursday.
That’s the view that investors and strategists are taking. Options traders have pushed the cost of hedging against declines in the British index to the lowest level since August, while forecasters see the gauge climbing 5.5 percent to a record through the end of 2017. The FTSE 100 is heading for its first annual gain since 2013, thanks to a slump in the pound and recovery in commodity prices.