Tue. Sep 29th, 2020

UK stock market rally accelerates after election – business live

Rolling coverage of the latest economic and financial news

Earlier:

1.07pm GMT

Every sector that makes up the FTSE 100 is up today, in a broad-based rally.

By my maths, around £43bn has been added to the value of the Footsie today, on top of £20bn on Friday as the Conservative Party won Thursday’s election.

12.40pm GMT

Russ Mould, AJ Bell investment director, reckons the FTSE 100 index could climb to 8,000 points in a year’s time, from around 7,500 today.

He argues that the UK stock market has been “unloved” for some time, and arguably undervalued compared to likely corporate earnings.

“Granted, the issue of Brexit must still be resolved and doubts continue to hover over the health of the global economy. However, were the UK to strike a trade deal with the EU, Washington and Beijing to settle their differences once and for all and governments around the world abandon austerity and launch looser fiscal policies then the world could look very different.

“Even if the FTSE 100 fails to challenge the 8,000 mark, investors may still be able to prosper through careful stock selection, as the index is packed with companies which either look cheap on an earnings basis, offer a fat dividend yield, or both.

Continue reading…Rolling coverage of the latest economic and financial newsLatest: UK PMIs show economy struggling in DecemberPMI falls to 48.5, showing sharpest contraction in 41 monthsFactories suffer worst month since 2012Earlier:European stocks hit record highIntroduction: US-China trade deal lifts marketsEnd of political paralysis in UK 1.07pm GMTEvery sector that makes up the FTSE 100 is up today, in a broad-based rally.By my maths, around £43bn has been added to the value of the Footsie today, on top of £20bn on Friday as the Conservative Party won Thursday’s election. 12.40pm GMTRuss Mould, AJ Bell investment director, reckons the FTSE 100 index could climb to 8,000 points in a year’s time, from around 7,500 today.He argues that the UK stock market has been “unloved” for some time, and arguably undervalued compared to likely corporate earnings.“Granted, the issue of Brexit must still be resolved and doubts continue to hover over the health of the global economy. However, were the UK to strike a trade deal with the EU, Washington and Beijing to settle their differences once and for all and governments around the world abandon austerity and launch looser fiscal policies then the world could look very different.“Even if the FTSE 100 fails to challenge the 8,000 mark, investors may still be able to prosper through careful stock selection, as the index is packed with companies which either look cheap on an earnings basis, offer a fat dividend yield, or both. Continue reading…

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