Rathbones' Chillingworth predicts 7% rise of FTSE 100 by the end of 2011

Rathbones' CIO Julian Chillingworth has forecast the FTSE 100 to hit 6,350 by the end 2011, a 6.8% increase on last week's 5,900 mark.

Chillingworth says the index is likely to benefit from UK companies’ exposure to overseas earnings but economic growth will remain muted. “The FTSE 100 will benefit from growth in the developing world, which is good for earnings. Overall, as long as the US Federal Reserve continues a policy of easy money you will see people continue to buy risky assets, such as equities, and the UK is expensive compared to other markets in the world,” he says. Chillingworth is concerned the EU’s plans to create a longer-term stability pact for the peripheral sovereign debt markets, such as Greece, Ir...