Market Research
Investors Set Aside UK Election Concerns - Lloyds Data
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The Lloyds Bank Investor Sentiment Index follows the rise and fall of investor sentiment here and abroad.
Investor sentiment in the UK remains at near-record levels
following a period of political turbulence caused by the snap
general election, new data from Lloyds shows.
The Lloyds Bank Investor Sentiment Index, which follows
the rise and fall of investor sentiment here and abroad, shows
momentum building in the UK, even after the last-minute election
called by Prime Minister Theresa May.
According to the index, average sentiment remains at near-record
levels at 6.29 per cent, despite a slight drop this month of 0.37
per cent.
Overall sentiment is up 3.87 per cent year-on-year.
As sentiment has been spurred despite geopolitical headwinds, UK
shares are up 4.82 per cent from last month.
And year-on-year, UK shares are up 7.04 per cent, underscoring
boosted confidence levels among investors.
The election of Emmanuel Macron in France has also caused
UK-based investors' confidence in Europe to rebound.
Since May, Eurozone shares have risen 5.2 per cent, from -17.13
per cent to -11.93 per cent, pointing to some latent concern
about Europe’s prospects, despite the Eurozone seeing the biggest
rise in sentiment this month.
On the other end of the spectrum, gold saw the biggest drop in
sentiment this month, falling by 7.17 per cent.
Still, investors continue to seek refuge in this safe haven, with
overall sentiment weighing in at 40.37 per cent.
Year-on-year, cash dropped 11.74 per cent to -30.83 per cent, the
biggest fall in sentiment over a year.
On the other hand, Eurozone shares rebounded by 24.7 per cent
year-on-year.
Emerging markets also performed well, as they spiked 14.49 per
cent, and Japanese equities were also popular and consequently
rose 12.59 per cent.
“Although our index takes a global perspective, the more
interesting angles this month are playing out closest to home,”
Markus Stadlmann, chief investment officer at Lloyds Private
Banking, said. “If we look at UK equities, investors are
unconcerned about shifting political tides and slowing business
activity growth. Sentiment is more than double what it was this
time last year.”