STOCKS NEWS EUROPE-FTSE 100 to hit 7,500 by end of 2014 -Dt Bank

Britain's benchmark FTSE 100 equity index should hit a record high of 7,500 points by the end of the year, Deutsche Bank (Xetra: DBK.DE - news) strategists write in a note, arguing that the UK market should benefit from any recovery in emerging markets (EM) economies, to which many UK companies have an exposure.

Reaching 7,500 points by the end of 2014 would represent a rise of around 12 percent from the current level of the FTSE, which stands at around 6,677 points.

"We have been 'underweight' the UK, 'overweight' the Euro STOXX relative to Europe and, since November 2013 when we last asserted this position, the FTSE 100 is flat and the Euro STOXX is up 5 percent," they write.

"After this underperformance we are pulling our recommendation on the UK back up to 'neutral'. Fundamentally, this is consistent with us warming up to the globally exposed stocks across Europe as the potential for an EM turn builds and the FTSE would be an inevitable conduit of this preference," they add.

Deutsche Bank strategists Gareth Evans and Thomas Pearce add that their favoured UK stocks include the likes of insurer Standard Life (LSE: SL.L - news) , home improvements retailer Kingfisher (LSE: KGF.L - news) , housebuilder Barratt Developments (LSE: BDEV.L - news) , and pubs operator Enterprise Inns (LSE: ETI.L - news) .

They also tip packaging products manufacturer Essentra (LSE: ESNT.L - news) , British American Tobacco and catalyst maker Johnson Matthey (LSE: JMAT.L - news) .

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net