The FTSE 100 hit a record intraday high of 7,129.83 points on Tuesday. It is up around 14 percent so far in 2016, although the U.S. dollar value of the FTSE 100 has been hit by sterling’s slump on currency markets.
“We expect the FTSE 100 to continue outperforming both the FTSE 250 and the STOXX 600 on the back of further sterling weakness,” they said in a research note.
The Deutsche Bank team said their currency strategists expected more weakness for the pound given political uncertainty over the process to take Britain out of the European Union, and some signs of a slowdown in economic growth.
The team added they thought it unlikely that the Bank of England would intervene to prop up sterling.