Investor confidence booms for UK and European markets
Investor confidence has risen for both UK and European markets, with the accelerated roll out of vaccines likely to be driving the renewed optimism.
Investor confidence in the UK rose another four per cent to a record high for the year, while confidence in Europe is up 28 per cent compared with April 2021, according to data from Hargreaves Lansdown.
For both the UK and Europe, confidence has likely been buoyed by the vaccine rollout, with the UK in addition sticking successfully to the roadmap out of lockdown.
According to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, the most sought after stocks in UK markets were those intertwined with the easing of restrictions, including British Airways owner IAG and aircraft engine manufacturer Rolls Royce.
Cineworld too has been a key target for investors.
Confidence in Asia Pacific, Japanese and global emerging markets was more muted, however, falling by between three and four per cent in May.
Streeter said those markets were likely being blown off course because of the ferocious speed of the spread of the virus across India, and a fresh lockdown in Japan.
Streeter added: “In the UK, the acceleration of vaccine programmes, and the fact the country has kept to the road map of re-opening appear to have helped boost confidence further to another record high this year.
“The Bank of England’s revision of growth prospects for the economy is also likely to have lifted spirits, despite the spectre of the rise in inflation. Forecasts that the sharp rise in prices won’t be sustained over the longer term is likely to calm immediate jitters.”