Capital Economics: FTSE 100 to hit 7,500 in 2021

Trio of factors could help extend UK blue chips' gains

A stronger economic recovery, ultra-loose monetary and fiscal policy and a continued rotation away from tech stocks could send the FTSE 100 soaring to pre-Covid levels, according to Capital Economics’ Paul Dale.

After recent positive news on potential coronavirus vaccines, the FTSE 100 has led the stockmarket recovery, rising 13.8% since the start of November, more than doubling the 6.5% return of the S&P 500 in that time. The UK blue-chip index's large exposure to sectors hardest hit by global lockdowns has boosted its gains, with the likes of airline IAG, defence firm Rolls-Royce and exhibitions group Informa seeing large positive share price moves. IW Long Reads: Is vaccine mania in danger of creating the next bubble that will pop? Dales, UK economist at Capital Economics, warned the cu...