The decline and underperformance of the FTSE 100 has not reflected building concerns about the UK’s economic outlook but rather the impact of recent events in China. The FTSE 100 is comprised to a greater extent than most other advanced economy benchmarks of commodity producers which are particularly dependent on demand from China. The stronger pound has contributed to the FTSE 100’s underperformance too, since a relatively high proportion of the revenues of FTSE 100 companies are derived from abroad. By contrast, the FTSE 250, which is comprised of a higher proportion of domestically-orientated firms than the FTSE 100, has continued to fare much better than the latter.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services