FTSE Rises But Brexit Fears Weigh

While the FTSE 100 got off to a strong start this morning thanks to Merlin’s ongoing negotiations to buy SeaWorld, uncertainty surrounding the ongoing Brexit negotiations continues to weigh on the index, and many analysts far that the FTSE 100 will remain directionless for the rest of the year.

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shareprices.com - Thursday, October 05, 2017

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The blue chip index is likely to see little movement for the rest of the year, but may drift higher in 2018, catching up as the details of the Brexit negotiations start to be ironed out.

The FTSE 100 has enjoyed some modest gains this year as the Sterling recovered to its highest level since the 2016 referendum, but now that the clock is ticking on Article 50, this has put the brakes on any gains for some of the bigger companies.

The oil sector, which accounts for around one fifth of the market cap of the index, has underperformed so far this year. These issues come together to leave the index the poorest performing out of all of the major European markets.

Over the three months leading up to the end of the year, we are likely to see the index continue to struggle. Consensus expectations are that the index will gain 4.4 percent over the course of the year - while the European STOXX 600 is predicted to rise by around nine percent. As we head into 2018, however, there is hope that the index will set new all time highs and shake off that uncertainty.

 

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