The FTSE 100 has had a modest year-to-date increase of around 7.5%, outperforming the STOXX Europe 600 index but falling behind other European indices such as the DAX 40 and the NASDAQ 100.
The depreciation of the pound sterling is expected to benefit the FTSE 100 by making UK exports more competitive. However, the US market remains important for the FTSE 100, while China's contribution to global economic growth is limited and Japan's interest rate hike adds complexity.
The dividend outlook for the FTSE 100 is stable, with projected total payments of £78.6 billion for 2024 and a 1% year-on-year increase. Share buybacks by FTSE 100 companies are substantial, totaling £49.9 billion for 2024.
Analysts speculate whether the FTSE 100 can reach the 9000 mark, with a potential bullish continuation triangle formation. Recent market movements suggest bullish sentiment, with potential support between the 55- and 200-day simple moving averages.
A year-end forecast for the FTSE 100 may see it approaching the 8400 level and potentially reaching a new record high. The interplay of dividends, share buybacks, and technical analysis will determine the FTSE 100's trajectory and its potential to reach 9000 in the future.