Why large is back in charge for FTSE stocks

After five years during which small and mid-cap stocks raced ahead, large cap stocks are coming into their own again. Could they help the FTSE set a new record over 7,000?

A major stockmarket trend of the past few years "could finally be breaking down", says Chris Brown-Humes in the FT. Small and medium-sized stocks are no longer racing ahead of their large counterparts. Since markets hit a low for the year on 5 March, large caps have had the edge in Europe, Japan and the UK, while in the US large caps outperformed in June.

In Britain, the FTSE 100 has gained around 10% and the FTSE 250 mid cap index is up 8.8%; this index slid by almost 5% in June, with 40 stocks tumbling by more than 10%. The FTSE 250 is down by 0.5% over the past three months, says Clare Francis in The Sunday Times, while the blue chips are up by more than 4.5%.

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