Buxton: FTSE set for trading range of 5,800 to 6,600

Schroders' head of UK equities Richard Buxton has said the FTSE could be set to move into a higher trading range after the index passed the 6,000 mark in a strong start to 2013.

The manager of the £3.2bn UK Alpha Plus fund predicts the FTSE 100’s new trading range could be between 5,800 and 6,600 as investors' risk appetite sees a revival. “To get to 6,600 there will be a re-rating of equities in aggregate, earnings upgrades, and a rotation out of safe, defensive areas,” said Buxton (pictured). An easing of three major macro fears – the US fiscal cliff, a eurozone collapse, and a hard landing in China – will prompt a return to a risk-on environment and huge inflows into equities, he said. “My base case has been that in 2013 there will be a gradual easing o...