Goldman Sachs tips FTSE 100 to hit 7,500 next year

Investment bank Goldman Sachs has made a bullish prediction London's leading share index will break through its all-time high over the next 12 months.

In a note to clients, seen by the Sunday Telegraph, the bank said it expects the FTSE 100 to trade at 7,500 this time next year, an 11% rise. The bank said with economic conditions improving in the UK, the FTSE 100 will continue its upward trajectory, which has seen the index rise 12.72% since the start of the year to trade at 6,647. Goldman Sachs added the fact new Bank of England Governor Mark Carney is likely to keep quantitative easing on the table will also support UK equities. Earlier this year, the bank also predicted the FTSE 100 would reach 7,200 by next March.