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Definition

A market capitalisation weighted index of the 100 largest companies trading on the London Stock Exchange (LSE). This index is more commonly known as the "footsie". Like most markets around the world, the LSE takes its lead from Wall Street. However, the LSE opens at about 10am South African time - which means that it can give South African investors an idea of what is happening on world markets before Wall Street opens at about 3.30pm (South African time). If the S&P500 index closed strongly up then you can expect the Footsie to open higher. If the S&P closed down then you can look at the footsie and see whether the downward trend was continued in Europe or if it was reversed - which will give you a good idea of how Wall Street will open.

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