Barclays Sees Risks Ahead For British Stock Market
- Global economy and rates outlook seen favoring other markets
- London shares lifted by data showing UK inflation cooled
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The defensive attraction of UK-listed stocks is unlikely to endure, as falling interest rates spur investment in riskier parts of the equity market, strategists at Barclays Plc said.
The FTSE 100 has recently outperformed European peers amid global economic concerns, aided by companies with non-cyclical earnings like Unilever Plc and British American Tobacco Plc. That’s unlikely to last “if we do see a soft landing into 2025 on rate cuts and falling uncertainty post the US election,” the team led by Emmanuel Cau wrote in a note.