Fund star Buxton sets 7300 target for Footsie

Star fund manager Richard Buxton has predicted the FTSE 100 could reach 7300 points next year.

Buxton, who joined Old Mutual from Schroders in June, said that he expected the UK to grow modestly over the next few months, and equity markets should continue to rise if they are supported by positive economic data.

He added that the market is on course to beat its all-time closing high closing of 6930.20, set in December 1999.

“There is a growing sense out there that the financial crisis is coming to an end,” Buxton said. “M&A is also starting to come back... the pieces of the puzzle are coming together, and we welcome that.”

He also shrugged off fears about a possible UK exit from the European Union.

“I don’t think it would mean that UK companies would not be able to do business in Europe — that’s just misguided,” he said.