Goldmans tips FTSE to hit 7,200 within a year

Goldman Sachs has forecast the FTSE 100 could reach 7,200 within the next 12 months - a new record high for the market.

In a research note, the investment bank also suggested the UK's blue chip index may hit 6,600 within three months and 6,800 within six months due to falling sterling and real interest rates. The record high for the index came in 1999 when it peaked at 6,930.20. "The FTSE 100 has risen sharply this year, but only in sterling terms," Goldmans' strategists said. "Reflecting the easing in conditions and fall in sterling we raise our FTSE 100 targets [to 6,800 over six months and 7,200 over 12 months] and continue to recommend UK companies with international exposure. "The FTSE 100 c...