Goldman Sachs predicts FTSE 100 will top 7,500 The investment bank justified that advice by arguing that the UK economy is improving and that the growth in the eurozone should stabilise in the second half of the year. Goldman's strategists also highlighted that UK monetary policy under the new Bank of England Governor, Mark Carney, was likely to remain loose. All of that would be positive for UK equities, Goldman argued. The FTSE 100 has already come close to breaching its previous record in recent months. Buoyed by measures taken by central banks around the world to bolster their economies - which acted to lower bond yields and so, in turn, make equities more attractive to investors - the FTSE 100 reached as high as 6,840.27 in May. But comments from US Federal Reserve chairman, Ben Bernanke, suggesting that American quantitative easing measures could soon be reined-in, sparked a sudden reversal. Global markets sold off sharply and the London index tumbled from its 13-year high. However, shares have since rallied and the FTSE 100 has recovered most of the ground it lost in May and June. Over the course of July alone, the index leapt 6.5pc, its biggest monthly rise since October 2011, and stood at 6,647.87 on Friday night. The second-tier FTSE 250, which is viewed as having a greater exposure to the domestic economy than the benchmark index, finished last week at an all-time high of 15,131.97. The index, which is comprised of smaller companies than those in the FTSE 100, closed above the 15,000 level for the first time ever on Thursday. The picture is much the same in the US. Both the 30-stock Dow Jones Industrial Average and the broader S&P 500 rallied to fresh records, with the latter index breaking above the 1,700 level for the first time in its history last week. Market sentiment last week was bolstered by stronger-than-expected economic data from China, the US and Europe. Recent central bank developments have also paved the way for equity indices to climb higher. The latest statement from the Federal Reserve, on Wednesday, calmed nerves about a tapering of its bond purchase programme by offering no fresh comment on whether or not it will slow down quantitative easing in September. The Bank of England and the European Central Bank also opted to keep interest rates at record lows. "Central bankers have chosen to say as little as possible in the last couple of days, allowing the economic news to do the talking," said Ian Williams, a strategist at stockbroker Peel Hunt.