What is the FTSE 100?

The Financial Times Stock Exchange 100 Index, commonly called the FTSE 100 or simply the "Footsie," is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization.

It is widely seen as a gauge of prosperity for businesses regulated by UK company law. However, because many of these companies are massive multinational corporations (like Shell, HSBC, and AstraZeneca), the index's performance is heavily influenced by global events and currency exchange rates, not just the domestic UK economy.

Ticker: ^FTSE

Curiosity: Despite being the premier benchmark for the UK stock market, roughly 70-80% of the revenue generated by FTSE 100 companies actually comes from outside the UK! Because of this, when the British Pound weakens, the FTSE 100 often rises because those foreign earnings become worth more in local currency.