FTSE 100 Could Reach 8,800 Region by the End of 2025 – Analyst

The FTSE 100 index, which has faced downward pressure following the UK autumn budget, could rebound significantly over the next year, with a potential target of the 8,800 region by the end of 2025.

That's the view of Axel Rudolph, a Senior Technical Analyst at IG Markets.

In a November article, Rudolph highlighted the immediate challenges for the index, including a rise in UK gilt yields and dampened demand for stocks.

After breaking below its 200-day simple moving average at 8,100, the IG Markets analyst noted that the FTSE 100 hit a key support zone around the psychological 8,000 mark.

“​A possibly steeper decline may take the FTSE 100 all the way down to its August low at 7,916,” Rudolph wrote. The FTSE 100 hit a low of around 7,991 on December 20 before regaining some ground.

However, the longer-term outlook remains optimistic. With the low end of the range seemingly holding firm, Rudolph said the FTSE 100 would re-enter its wide trading range of 8,169 to 8,414 in early 2025, with the potential to climb further. However, it is currently back in that range.

“Towards the middle part of next year another attempt at reaching the 8,500 mark could be made, and, if successful, the 8,700-to-8,800 region be reached by end of 2025,” he explains.

He states that following the autumn budget, investors feel the UK might have started to turn the corner when it comes to growing more substantially again.