Citi calls FTSE at 7,000 by end of 2013

Analysts at Citigroup have hiked their 2013 FTSE 100 forecast to 7,000, suggesting the UK's blue chip index can still add another 10% by the end of the year.

The call, which makes Citi the most bullish of the leading brokers, is based on a view investors will begin to discount better earnings growth in 2014 ahead of time. Citi's European portfolio strategists predict a "real equity bull market in the next couple of years". The analysts said investors have already discounted struggling earnings growth rates in Europe and beyond for 2013, and will soon start looking further out. "We expect economic growth to inflect in 2013 and be accelerating into 2014. This in itself makes double-digit earnings growth more likely in our view." The ca...