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Index IDEA: FTSE 100 Index performance continues to lag FTSE 250 as French election nears

As we near the final round of French presidential elections on Sunday, May 7, the FTSE 100 Index, which measures performance of the 100 most highly capitalized blue-chip companies traded on the London Stock Exchange, has continued to underperform the FTSE 250 Index, which measures next 250 mid-cap companies not covered by the FTSE 100 and includes approximately 15% of UK equity market capitalization.

The FTSE 100 value declined 0.3% in the week ended May 2, 1.6% less than the FTSE 250. This compares to a more than 5% difference in index return between the two indexes in the second quarter (a 0.7% decline for the FTSE 100 relative to a 4.8% rise for the FTSE 250) and a nearly 8% differential year-to-date (a 2.9% rise for the FTSE 100 relative to a 10.5% rise for the FTSE 250).

Tom Goodwin, senior index research director, FTSE Russell, said:

“The FTSE 100 and FTSE 250 Indexes are excellent tools to measure shifting performance among UK equities in an era when the Trump election, Brexit and now the French election are contributing to uncertainty in the Eurozone markets. The FTSE 100, which measures the performance of larger multi-national UK stocks, is relatively sensitive to global events, while the more domestic-focused FTSE 250 is a bit more attuned to economic and political events within the UK. The relative performance of these two indexes in 2017 may reflect the turbulent nature of global politics and concerns around the upcoming French election.”


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Source: FTSE Russell UK index total return based on end-of-day data as of May 2, denominated in British Pounds. Past performance is no guarantee of future results. Please see the end for important legal disclosures

 

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Views expressed by Tom Goodwin of FTSE Russell are as of April28th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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