FTSE ‘to hit record high’ Stocks booming despite Brexit

THE FTSE index of Britain’s biggest firms is predicted to defy Brexit fears by surging to nearly 8000 next year.

Investment firm AJ Bell reckons the stock market will hit a record high, despite the uncertainty still surrounding our divorce deal with the EU.

A rise to 8000 would add more than £100billion to the value of Britain’s 100 largest listed companies.

AJ Bell thinks the FTSE is still a good investment compared with other markets around the world.

The weak pound has also pushed up the overseas earnings of Uk-based companies that do a lot of their business abroad.

Russ Mould, investment director at AJ Bell, said: “While issues such as Brexit, an economy that is hardly firing on all cylinders and political risk must not be dismissed, none of these fears are new – and the UK market has three things going for it as we enter 2018 – performance, valuation and dividend yield.”

The prediction came as the FTSE 100 jumped 46 points to close at 7537 yesterday, within sight of its 2017 high of 7562.

The prospect of US tax reforms buoyed global stock markets.

David Madden, a market analyst at CMC Markets UK, said: “There is talk US lawmakers will pass the pro-business tax cuts that President Trump proposed this week.

“And that has been fuelling global investor sentiment.

“The prospect of those tax cuts being approved ahead of Christmas is propping up global stock markets.” Oil = $63.13

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