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Why is the FTSE 100 important?

1 February 2013 Last updated at 09:58 GMT

The FTSE 100 is the index of the UK's largest 100 companies, and is a key indicator often referred to by financial experts.

It has performed very well in 2013, despite the economic troubles, rising by over 6% in January.

But why does this matter to everyone else not working in the financial sector?

The BBC's Steph McGovern has been finding out.