Fidelity CIO tips FTSE to reach 7,000 as central banks keep policy loose

Fidelity Worldwide Investments' global CIO for equities, Dominic Rossi, has predicted the FTSE 100 will test a new high as accommodative central banks keep monetary policy loose and rates low into 2014.

Rossi (pictured) said while valuations of equities in the US and UK have recovered from being "undervalued", they have by no means reached a peak. Consequently, he said it is "very likely" the FTSE 100 could set a new high above 7,000 points. "It nudged over 7,000 in 1999, and I would not be surprised to see an attempt at that summit," he said. The most recent peak for the index was achieved in May when the index hit 6,840, before the summer lull sent it back down near to 6,000. Nonetheless the FTSE 100 - along with a number of indices around the globe - has rallied sharply from...