SINGAPORE (July 9): UK equities had a bad start to the year. By the end of 1Q2018, the FTSE 100 was the worst-performing major European index. A Bank of America Merrill Lynch (BOAML) survey of fund managers in March called the index the main “big short” of the respondents, as they expected it to continue falling.
While the FTSE 100 recovered in June to levels before the decline, opinions on the UK market remain mixed. Some view the Brexit discussions as a source of uncertainty that will affect the direction of the market and pound sterling. On June 20, the currency hit a seven-month low, owing to a vote on the Brexit deal.
Nevertheless, there are investors who see opportunities to buy UK equities amid the volatility. For instance, the latest BOAML survey in June showed the lowest number of investors underweighting UK equities this year... (Click here to read the full story)