BREXIT NEW YEAR BOOST: FTSE 100 seven-day winning streak starts 2017 on a high


The FTSE 100 polish off Friday at 7210.05 and is now almost five per cent higher than at the start of December.

And learns believe the blue-chip index could keep rising in 2017, as Britain’s frugality continues to boom.

Investor confidence in UK companies is also expected to keep fast firm amid the withdrawal from the European Union (EU).

Low interest estimates, the weaker pound, increased Government spending and higher oil prices are amidst the reasons stocks could keep rising.

Market analyst at Reflect on Markets, Naeem Aslam, predicts the FTSE 100 could float another 25 per cent.

He said: «We have projected the level of 9,000 for the FTSE 100 on the point of departure of softer Brexit.

«If we have soft Brexit, the FTSE 100 could polish off really well, because if you look at the economic data for the UK, it has performed to the nth degree well.»

Weaker sterling has been a particular boost to companies sloped in premier index, as it has increased the value of overseas earnings and helped kick exports.

Julian Jessop from Capital Economics predicts the thesaurus will reach 7,500 by the end of 2017.

He said: «Some of the factors that promoted UK equities in 2016 are set to continue to support the economy in 2017.

«The latest readings from the international PMIs suggest that the prospects for the world economy are reasonably cheerful.

«Sterling’s weakness also looks set to boost exports further.»

Richard Stone, chief principal of The Share Centre, added: «With the overseas earnings of FTSE 100 public limited companies supported by weak sterling, with fiscal loosening in the US and the UK following the particular votes in 2016, and with low interest rates, there are a number of rationales why investors may look optimistically into 2017.

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