Ftse Forecast For Next Year

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Ftse Forecast For Next Year

Ftse 100 Forecast For Year 2026

There's no doubt that 2025 was very good for the FTSE 100 index. So far, the index is up by 11% for the year, which is pretty good.

And if we also account for the dividends, then the return for that period becomes 14.5%. A quick look at the history shows that the average return for the FTSE 100 is only 8%. So, it's safe to say that 2025 was a very good year for the UK's leading index.

Ftse 100 Will Touch 10134 Points In 2026

As for the year 2026, most of the analysts are bullish on the FTSE 100 index. This has mostly to do with the fact that the UK stocks are still undervalued.

quick look at the European or the US stock market makes it clear that the FTSE 100 is still very undervalued. So, the chances of more upside in the FTSE 100 are very high in 2026.

Also, the FTSE 100 is known for paying a good percentage of dividends as well. So, all of this makes it very clear that the UK's leading market is in a very good spot right now.

The current situation of the world has forced investors to worry about trade policy, geopolitics, and tariffs. Amidst all of this, more and more investors are now favoring stocks that pay dividends.

Surprisingly, the FTSE 100 has a lot of stocks that are undervalued and also pay good dividends. So, experts believe that more investors will now focus on markets such as the FTSE 100 to get some good returns.

Amidst all of this, the Bank of England is also on a path of rate cuts. In fact, the pace of the BoE is way faster than that of the other leading central banks in the world.

Now, that's a good thing for the UK's equity market and will also foster a more friendly environment for the businesses. Also, the Pound is getting weaker, which is yet another plus point for the FTSE 100.

With all things considered, the Economy Forecast Agency believes that the FTSE 100 will reach 10134 by the end of 2026. So, that means a return of almost 10% from the FTSE 100's current levels.

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