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FTSE 100 Tops 9,000 as Regulators Unveil Market Reforms

Regulators’ new capital rules have bolstered confidence among global allocators in undervalued UK equities.

The sun rises behind skyscrapers and offices of the City of London financial district in London, Britain, May 5, 2022. REUTERS/Toby Melville/File Photo
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Overview

  • The FTSE 100 has gained more than 10% this year, outpacing the S&P 500’s roughly 6% return.
  • With dividends reinvested, both the FTSE 100 and the S&P 500 have delivered about a 13% total return over the past 12 months.
  • FTSE 100 stocks trade at around 14 times expected earnings, compared with more than 20 times for the S&P 500, highlighting a steep valuation discount.
  • Heavy weightings in healthcare, utilities and food retailers have insulated the FTSE 100 from broader global market volatility.
  • Chancellor Rachel Reeves has urged a more optimistic narrative for UK equities and backed measures to boost domestic listings for retail investors.