Live Markets: UK to benefit from tech rout, improving macro

Evolution AB (publ)

19/07/2024 11:28

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    UK TO BENEFIT FROM TECH ROUT, IMPROVING MACRO
    Rotation out of technology shares has been a big theme in markets in the last two weeks,
with the global equity rally broadening out to other sectors, such as small caps in the U.S.,
and Barclays expects the UK to also benefit. 
    "The UK, which has very little tech exposure, has logically outperformed recently," Barclays
says. 
    "If tech leadership stalls, at least for now, the UK market has a higher chance to
outperform and attract inflows, in our view," Barclays adds, reiterating their overweight stance
on the region. 
    Michele Morganti, senior equity strategist at Generali Investments, thinks the UK's FTSE 250
 .FTMC  looks "particularly attractive". 
    "Following the Labour victory in the recent UK elections, there are higher chances of
improvement in UK-EU relations," Morganti says. 
    "We expect UK equities to benefit from the announced pro-growth policy and the improving UK
macro surprises."
    
    (Samuel Indyk)
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    FRIDAY'S OTHER LIVE MARKETS POSTS: 
    BEIJING MAY HAVE TO ACCEPT LOWER GROWTH CLICK HERE
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