FTSE 100 Forecast 2022, 2025, 2030 – Live Chart

The FTSE 100 index has staged a strong comeback in the past few weeks as investors cheer the new Rishi Sunak administration. It was trading at £7,150, which was the highest level since 23rd September of this year. 

The Footsie has jumped by more than 6.6% above the highest level in October. In all, the index has dropped by more than 4%, meaning that it has outperformed its American peers like the Nasdaq 100 and the S&P 500 index.

What is FTSE 100?

The FTSE 100 is an index that tracks the performance of the biggest British companies by market cap. It aims to act as a gauge for the performance of UK stocks. The FTSE is operated by FTSE Russell, a company that provides indexes, data, research, and analytics. Other indexes run by the company are the Russell 2,000, China A50, FTSE 250, and FTSE All Share indices.

FTSE 100 constituent companies

The FTSE 100 index is made up of companies in all industries like consumer staples and discretionary, energy, retail, finance, mining, telecommunication, technology, real estate, and healthcare, among others. Shell, the biggest constituent company, has annual revenue of over £365 billion. The smallest company in the FTSE 100 index is Rightmove, which has annual revenue of over £155 million.

The biggest FTSE constituent company in the FTSE 100 by market cap is Shell, which is valued at over £170 billion. It is followed by companies like Unilever, HSBC, BP, Diageo, and British American Tobacco. 

The biggest energy FTSE 100 constituencies are Shell and BP. On the other hand, the biggest retail stocks in the index are Tesco, Sainsbury, and Ashtead Group. Meanwhile, the biggest banks in the FTSE 100 index are HSBC, Lloyds Bank, Barclays, and NatWest. Mining stocks in the index are Rio Tinto, Glencore, Anglo-American, and Antofagasta.

FTSE 100 vs FTSE 250 vs FTSE 350

A common question is on the difference between the FTSE 100, FTSE 250, and FTSE 350 indices. The FTSE 100 index tracks the biggest companies in the UK. On the other hand, the FTSE 250 index is made up of the 250 companies that follow those in the latter index. 

The two indices have a close relationship in that it is easy for a company to move from FTSE 250 to FTSE 100. Companies that are relegated from the FTSE 100 move back to FTSE 250. 

The FTSE 350 index, on the other hand, is made up of a combination of the FTSE 100 and FTSE 250 indices. 

FTSE 100 risers in 2022

Most companies in the Footsie index have been in the red in 2022 amid high chances of a recession in the UK. Some, however, especially those in the mining and energy sectors, have done well this year. The shell share price jumped by over 48% in 2022 as oil and gas prices jumped. The firm has seen its profits soar this year. 

BAE Systems, the biggest European defence contractor, has seen its share price soar by 48%. The war in Ukraine pushed more investors to military contractors. BP share price surged by over 45%. Other top FTSE 100 risers in 2022 are Glencore, Imperial Brands, British American Tobacco, Standard Chartered, and London Stock Exchange (LSE) have also risen, as shown below.

FTSE 100 constituents

FTSE 100 latest news

There are several factors moving the FTSE index. First, investors are focusing on UK’s political situation following the collapse of Liz Truss’ administration. Investors are more confident about the economy now that the government seems to be fiscally conservative. 

Second, the index is reacting to the falling home prices. Data published by the Nationwide Society showed that the house price index declined by 0.9% in October. It fell from 9.5% to 7.2% on a year-on-year basis. As a result, companies like Taylor Wimpey and Barratt Development have seen their share prices retreat.

Third, the FTSE index has reacted to mixed results by leading constituent companies. Retailers reported weak results, while mining and oil companies had a strong quarter.

FTSE 100 live chart

FTSE 100 forecast 2022

As 2022 comes to an end, there are two main catalysts that will drive the FTSE 100 index. First, the index will react to the upcoming earnings of both UK and American companies. Still, most UK companies that have an impact on the index have already published their results. 

They include companies like Barclays, Lloyds Bank, Glencore, and HSBC. Also influential American firms like Microsoft and Alphabet have also published their results. Second, signs of a Fed and BoE pivot will have an impact on the FTSE 100 index. 

On the four-hour chart, we see that the FTSE has formed what looks like a rising wedge pattern that is shown in green. This pattern is usually bearish. Therefore, there is a likelihood that the index will pull back in the remaining part of 2022.

FTSE 100

FTSE 100 forecast 2025

The FTSE 100 index will likely go through a turbulent phase by 2025. Some of the challenges the FTSE 100 shares will face include geopolitics, Brexit, and possibly political uncertainty. Turning to the weekly chart, we see that it has been moving sideways in the past few months. 

In all, it has been in a bullish trend since 2020.  Therefore, there is a likelihood that the index will have a positive performance by 2025. If this happens, the next key level to watch by 2025 will be at 8,000. This price is about 12% above the current level.

FTSE 100 index

FTSE 100 forecast 2030

It is relatively difficult to predict where the FTSE 100 index will be in 2030. Besides, many things, such as another global pandemic could happen by then. Still, in my view, I believe that the FTSE index will be much higher in 2030 than where it is today. Historically, the index has tracked the performance of American stocks, which have done well in extended periods. Therefore, I suspect that the index will rise to about £9,000 by 2030.

FTSE 100 historical data

The FTSE 100 index has risen by more than 25% from its lowest level in 2010. In this period, it has underperformed the Stoxx 50 index, which has risen by more than 50%. This performance is mostly because the index lagged amid high concerns about Brexit. The FTSE 100 index has underperformed the S&P 500 and Nasdaq 100 indices that have rallied by more than 200%.

How to invest in the FTSE 100 

There are two main ways of investing in the FTSE 100 index. First, you can buy CFDs tied to the index. A CFD is a financial instrument that tracks the price of an asset. These products are offered by forex and CFD brokers. Another way is to invest in FTSE 100 ETFs. Some of the top ETFs are the iShares Core FTSE 100 indices, Lyxor FTSE 100 ETF, and HSBC FTSE 100 ETF.