Markets

London's FTSE 100 Faces Existential Struggles on its 40th Anniversary

Published January 2, 2024

In a stark contrast to the celebratory milestones typically marked with pomp and grandeur, London's FTSE 100 index approaches its 40th anniversary amidst a period of profound uncertainty and struggle for the UK's premier stock market indicator. The platform that hosts some of the nation's most esteemed companies finds itself entangled in a web of existential questioning as it commemorates four decades since its inception.

A Legacy of Challenges

As the FTSE 100 prepares to blow out the candles on its 40th birthday cake this Wednesday, its journey up to this moment has been anything but a smooth sail. The index has aged through tumultuous economic climates, market volatilities, and geopolitical uncertainties, characterizing a storied past with patches of success overshadowed by persistent adversities.

The Blue-Chip Barometer

The FTSE 100, a barometer for the UK's bluest of blue chips, reflects not just the economic health of its constituent companies, but also the broader story of the nation's ongoing financial and commercial evolution. Within the context of the global market, UK-based companies and the pound sterling experience significant pressure from international competitors and currencies like the US dollar. The avenues of complexity are further widened as large tech corporations such as MSFT - Microsoft Corporation, and AAPL - Apple Inc., dominate global markets.

Microsoft, a leader in both the software and hardware realms, has significantly influenced the technological landscape with its range of products including but not limited to Microsoft Windows, Office suite, Edge browser, and its Xbox gaming consoles. Apple, lauded as a titan of innovation, has set its mark as a frontrunner in consumer electronics and holds the title for world's largest technology company by revenue and most valuable by market valuation. Such monumental success stories of US companies invariably cast shadows on their UK counterparts and prompt investors to consider allocations within a global context.

Amidst these challenging comparisons, the FTSE 100 also appears affected by currency struggles, with the pound sterling (FOREX:GBP) grappling with its own set of challenges in the ever-volatile forex markets.

FTSE100, anniversary, investment