Chart of the Week

The FTSE rallied strongly last week, ending up +2.6%, well ahead of most of its peers after tracking sideways over the last year. The chart below illustrates the strong correlation between the FTSE and ASX due to their similar composition. We believe both can enjoy a relatively strong few months as investors strive to find some semblance of reasonable relative value across markets that are on the “rich” side.

• The FTSE is on track to make fresh all-time highs back above 8000, an encouraging read-through for the ASX.