You are here: Home - Investing - Experienced Investor - News -

Investor sentiment reflects Brexit voting patterns, says Lloyds

Written by:
Investor sentiment towards UK and Eurozone equities mirrors the voting patterns in the 2016 referendum, according to the latest investor sentiment index (ISI) from Lloyds Bank Private Banking.  

Investors in London, which had the highest remain vote (62%) during the referendum, are looking across the Channel, and have the most positive sentiment on Eurozone equities (15%). In contrast, the North, which includes Yorkshire and the Humber, had the third highest Leave vote in the UK and today has the highest positive sentiment towards UK equities (15.9%) and the most negative sentiment towards Eurozone shares (-9.5%).

The East, which also voted leave, (56.5%) reflects this trend with a positive sentiment score of 7.4% for UK shares but -4.7% for Eurozone stocks. Scotland, although scoring both asset classes negatively, favoured Eurozone (-3.6%) over UK stocks (-5.7%), in line with the remain vote (62%) cast during the referendum.

Overall confidence is lower, falling for the first time in six months to 9.6%, from 8.4%. This may reflect increased volatility in recent weeks, but remains higher than any score achieved throughout 2017.

In the past two years, UK stock markets have taken a hit relative to other geographic regions. The average fund in the UK All Companies sector is up 26.9% and in the UK Equity Income sector, just 20.7%. This compares to 38.9% for the Europe ex UK sector and 47.2% for the US.

Sentiment fell across all equity indices during the month, with the U.S. (-9.3%) and U.K. (-9.2%) seeing the largest decline in investor confidence. In a sign of investors’ increasing risk aversion, sentiment improved for gold and cash. However, sentiment across all equity markets is significantly higher relative to last year, with the exception of UK shares.

Markus Stadlmann, chief investment officer at Lloyds Bank Private Banking, said: “As we approach the anniversary of the government triggering Article 50, it’s interesting to see investor sentiment broadly mirroring the referendum results. It could reflect political leanings but it’s more likely that investors are simply keeping a close eye on how the negotiations unfold and what impact these will have regionally.

“The recent market correction was sparked by US wage growth being higher than expected, which will put further pressure on US policymakers to more aggressively increase interest rates. This news has particularly taken its toll on global equities and fixed income assets, with cautious investors viewing the safety appeal of gold and cash more favourably.”

He added that it was not all ‘doom and gloom’ pointing out that confidence is still higher than at any point in 2017, and there are still some strong performers out there in the shape of emerging market and Japanese shares.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
remortgagors cash
Coppers and £50 notes could face the chop

The government is seeking views on the future of 1p and 2p coins, plus the £50 note, as it aims...