UK investors nervous about US equities ahead of presidential election
Weaker-than-expected jobs data, ongoing interest rate speculation and political uncertainty ahead of the presidential election means confidence in US equities slipped by 3%, the biggest drop of all asset classes in the period.
Sentiment towards eurozone equities declined by 2.7%, coinciding with prime minister Theresa May’s announcement that she will trigger Article 50 by the end of March 2017.
Despite the confirmed Brexit timetable, for the third consecutive month investor confidence in UK equities and UK property has increased. But for the first time since July, figures show a downward shift in sentiment in UK government bonds, which are yielding very little, and corporate bonds.
Elsewhere, commodities saw the biggest increase in investor confidence, up 9%, fuelled by positive market data and less gloomy forecasts for the asset class.
‘Safe haven’ gold maintains its leading position as the asset class of choice.
Markus Stadlmann, chief investment officer at Lloyds Private Banking, said: “Given the uncertainty around the outcome of the forthcoming presidential election it is unsurprising that investors are increasingly nervous about US equities. Despite this we are expecting news on US monetary policy in December so we could see sentiment change significantly in coming months.”