Tide turning?10 Apr 2024 21:12
Outlook improving for unloved British equities, says Barclays
The fortunes for shunned UK-listed stocks are poised to improve amid rising oil prices and a fading overhang from Brexit, analysts at Barclays have said in a note to clients.
Emmanuel Cau, Barclays Head of European Equity Strategy, said that while UK equities had missed out in the AI-fuelled rally since November, the market was starting to catch up.
Mr Cau said: “The steady rise of oil/commodities means UK earnings per share momentum should improve and provide some backstop to depressed valuations.”
He added: “UK co-ordination with the EU appears to be improving across both major parties, with elections looming, which could unwind some of the risk premium placed on UK markets. With multiples looking depressed, inbound M&A, and buybacks are seeing a pick-up, which could help valuations.”