UK investor sentiment reaches 2016 high – Lloyds

Added 26th September 2016

Investor sentiment in the United Kingdom has reached a new high for 2016, according to the Lloyds Bank Investor Sentiment Index.

UK investor sentiment reaches 2016 high – Lloyds

August saw investor sentiment rebound in the UK, following a sharp fall in July in the wake of the EU referendum. All UK asset classes saw a rise in sentiment last month, according to Lloyds.

“Despite continued market volatility in August all UK asset classes have increased in sentiment, signalling that investor confidence in the UK economy is rebounding at least in the current environment,” said Markus Stadlmann, chief investment officer at Lloyds Private Banking.

UK property and UK equities saw the biggest increase in sentiment month on month; 14.79 and 7.09 percentage points respectively, according to the index. And while attitudes toward the UK recovered, foreign and typically more risky assets fell, despite two prior months of improved sentiment.

US, emerging market and Japanese equities, in particular, suffered sentiment declines due to ongoing speculation around the next move in interest rates and monetary policy and their impact on currency.

Gold retains its position as the preferred asset class (a positive sentiment of 41.26%), with last month’s decline levelling off.

“While the UK looks more resilient in the short-term, there are still reasons for investors to be cautious. We are still yet to see any real shift in monetary policy emerge globally,” commented Stadlmann. “More expansive policies could, over an extended period of time, prepare the ground for a new bull market. On this basis, it is not surprising that investors are still including save havens as part of their asset allocation.”

Investors' desire to seek shelter in the relatively safe haven that gold constitutes could be indicative of greater scepticism about the longer term prospects of the UK economy amid continued post-Brexit uncertainty and volatility, noted Lloyds.


Portfolio Adviser: Guide to Europe

Portfolio Adviser: Guide to Europe

After a politically turbulent time in 2016, Europe has been under scrutiny with several nations going to the polls.The question asked, would investors be right to...

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address



Investment Strategy




PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

Sponsored Content