Cazenove: FTSE has almost 10% further to fall

The FTSE 100's correction from its recent April peak is likely to continue to October and wipe a further 10% off the index's value, Cazenove technical strategist Robin Griffiths believes.

London's leading index has already fallen 13.7% from from its April peak of 5,825 and Griffiths expects the losses to hit 25% from this figure. "We are in a cyclical correction and they can be quite brutal," Griffiths says. He says a four to six-week mid-summer rally on thin volumes will bring a brief respite to an overall fall of 20% to 25%, which started in mid-April and should last until October. "Leading up to October we will be buying a lot of gold, but then just before October we will buy good quality companies in the FTSE and Dax," Griffiths says.