Is the FTSE 100 Headed for a Brick Wall?
The FTSE 100 Index’s bull run is headed for a reality check, according to HSBC Holdings Plc. Equity strategists at the U.K. bank predict Britain’s benchmark will end the year down about 7 percent, reversing the current gain. The promise of central-bank stimulus will soon give way to harsher economic realities after voters decided to leave the European Union, said Robert Parkes, HSBC’s head of European equity strategy. Supported by the plunging pound, the FTSE 100 -- mostly made up of multinational commodity producers, drugmakers and banks -- has soared 5.6 percent since Britain’s shock vote to secede from the EU. After an initial plunge, the gauge erased its losses in just four days and managed to enter a bull market last week. Stanhope Capital Head of EMEA FX Strategy Jonathan Bell discusses with Bloomberg's Manus Cranny on "The Pulse."