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It’s not a secret FTSE 100 The index is currently enjoying its day in the sun. But it’s quickly becoming an extended Indian summer, as January marks Footsie’s seventh consecutive month.
This was its longest monthly streak in over 12 years!
That’s surprising given the volatility of the past few months, with unemployment taxes, fall budget uncertainty, AI bubbles, Venezuela, Greenland, and more.
Another impressive record is that the FTSE 100 recently crossed 1,000 points in a very short period of time. It took 171 days from 9,000 to 10,000, according to the report. AJ Belldata.
The previous record was 229 days back in the late 1990s when it went from 5,000 to 6,000.
And the positive momentum continued in February, even though billions were wiped from a number of data companies like London Stock Exchange Group (LSE:LSEG) and RELX yesterday (February 3).
As I write, the FTSE 100 is above 10,400.
Why is it burning?
Last year, the blue-chip index returned 25.8%, including dividends. This was its fifth best year since its inception in 1984.
Returning until it hit i S&P 500full of tech titans like the business equity of the country’s regions.
What’s going on here? Well, I don’t want to rain on the Footsie show, but in retrospect it should be noted that 2025 was a very strong year in many global indicators.
Compared to most of these, the FTSE 100’s comeback doesn’t look that impressive.
Nevertheless, the index benefited from investors worried about unpredictable US government policy and high-value stocks of the S&P 500. Therefore, it has become a safe haven in troubled times, along with gold.
We have seen increasing interest from foreign investors looking to diversify their assets and the FTSE 100 has also shone in turbulent times due to the abundance of defensive style companies…The UK is a rich hunting ground for profits.
Dan Coatsworth, AJ Bell.
Fear of AI disruption
A common criticism of the index is that it lacks high-growth technology companies, particularly in artificial intelligence (AI). However, this perceived Achilles’ heel has actually turned out to be an advantage recently, as investors have begun to worry that AI could become Pandora’s Box.
That is certainly the case now for investors London Stock Exchange Groupor LSEG. After crashing more than 10% yesterday, shares of the financial data provider are down a staggering 40% in 12 months.
The biggest fear here is that AI companies like Anthropic (and its Claude product) might hack into customers using LSEG (Workspace/Refinitiv) data terminals. This cannot be completely discounted.
However, it is important to note that analysts at UBS think the risk is exaggerated. They point to LSEG’s data provision agreements with Anthropic, OpenAI (ChatGPT), and others.
In addition, the forward price multiple fell below 16. And the forecast dividend yield is now 2.2%, which adds weight to the investment case considering LSEG’s 15 years of consecutive return growth.
Yes, given the uncertainty, it will take a brave soul to pile into stocks today. But it’s worth noting that UBS recently hit a 12-month share price of £110 for LSEG. That’s 55% higher than the current price!
On this basis alone, I think it is worth investigating further.
