Is the UK Now a Buy? Analysts Weigh in After Market Meltdown and Bank of England Intervention

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Although some analysts have highlighted that the U.K. retains strong fiscal fundamentals, many are reluctant to jump back in until the smoke clears.

"I think some of these doomsday fears are being somewhat overblown to some extent, but I don't think anyone wants to step in right now and buy undervalued U.K. assets at this point," he said.

Alan Custis, head of U.K. equities at Lazard Asset Management, told CNBC on Thursday that the general sale as a result of the country's economic turmoil"does in a way throw up some opportunities" for British blue chips with overseas earnings who benefit from a falling pound.

"Stability in the gilt market is very important for those reasons, because it can give us some sense as to where interest rates may ultimately land, and obviously that will have a big impact on mortgage rates and consumer spending, so it's all linked in, so yes, we watch the gilt market just as much as we watch the equity market.

Kwarteng has promised a more detailed and costed implementation plan on Nov. 23, while the Bank of England meets on Nov. 3 to appraise the impact of the fiscal announcements and determine the scale of its next interest rate hike.

 

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