Natwest Group27 Jan 2022 10:13
LIVE MARKETS-Fed tightening cycle: bend it like the Footsie
Thu, 27th Jan 2022 10:00Thomson Reuters
Many pundits expected London's FTSE 100 to do quite well
when the Fed decided to embarked in this new tightening cycle.
And it did!
Not only is the Footsie one of the only European benchmarks
to trade in the black this morning, it's also outperforming the
other blue chip benchmarks this year.
It's up 1.3% since the beginning of 2022, against a 4.5%
fall for the pan-European STOXX 600.
The fact that London's star index is overweight on the
value/cyclical side with big financials and commodities stocks
while quite light on tech, makes it a good bet to trade rising
yields, or so common wisdom goes.
As you can see this morning, so far, it's going according to
plan:
Betting on UK PLC has been a losing trade for some years
but it seems those advocating for a "Buy UK" strategy are
finally being vindicated. For now.