Investor sentiment in UK still strong, finds Lloyds
Two of the three top-performing asset classes in terms of consumer confidence were Sterling-denominated: UK Property and UK Shares attracted a net positive sentiment score of 38 percent and 33 percent respectively. Emerging markets was a distant third in the monthly survey with a net score of 16 percent.
In addition, UK Government Bonds have seen the biggest year-on-year increase with an 11 percentage point swing, while UK shares benefitted from a nine percentage point positive swing.
Net sentiment towards the Eurozone saw the largest drop, falling seven percentage points to an overall net sentiment of -28 percent. This swing in sentiment shows that investors still hold a persistently weak view of Eurozone shares. It sits alongside Japan as one of the two asset classes that are viewed negatively on a net sentiment basis.
Ashish Misra, Head of Investment Policy at Lloyds Bank Private Banking, said: “The UK has seen a significant step change in investor sentiment…and UK assets are some of the top-scoring classes for investors. This change can be attributed to a far more positive outlook for UK GDP growth as well as the recovery of the UK economy as a whole that we have witnessed, particularly in the last 12 months or so. While we have continued to see a month-on-month decrease in UK property, this still continues to be the highest-scoring asset class in our universe and reflects a more stable housing market across the UK.
“…Despite all the geo-political and macro-economic uncertainty that has visited financial markets over the summer, investors are still holding their nerve in terms of staying invested.”