UK stocks are set to outpace their European peers, according to some of Wall Street’s biggest institutions, with the London market viewed as better placed to weather the fallout from US president-elect Donald Trump’s plans for sweeping trade tariffs. Investment banks Goldman Sachs and Société Générale and fund managers BlackRock and JPMorgan Asset Management are among firms that believe UK equities are likely to continue a recent run of outperformance of Eurozone stocks.
Meanwhile, a rise in share buybacks and merger activity should provide a further boost to British stocks, while its technology-light index tempts investors seeking to diversify away from the US tech giants, he added. “The UK has been unloved for a long time but I now think the outlook for the UK equity market is at the strongest it has been for several years,” he said. It is not the first time in recent years that Wall Street firms have turned bullish on the UK.