UK investor confidence is at its highest point this year, bouncing back from a post-referendum fall, new figures show.
The Lloyds Bank Investor Sentiment Index, released today, showed all asset classes bar two – gold and cash – have experienced a rise in confidence since last month. Overall, positive sentiment is up 8.13 percentage points overall since July.
UK shares and property showed the biggest increase in sentiment – up 23.98 and 13.02 percentage points respectively on July’s figures. However, both were down significantly – 28.57 and 47.11 percentage points respectively – on August last year.
In July, sentiment falls on UK shares and property led to a record low level for the index.
“Investor sentiment has rebounded since the EU referendum,” said Markus Stadlmann, chief investment officer at Lloyds Private Banking.
“The fact that gold and cash are viewed slightly less favourably reflects this greater confidence in risk assets. It is still early in the process, but as the economic data starts to come through, the post-referendum outlook will become clearer for investors.
“For example, if we see clear evidence of real salary growth, this should be positive for UK households and would benefit the economy, but if domestic spending falls it will have an impact on specific companies and sectors.
He added: “At present, UK equities appear to be proving resilient, and generally we are beginning to see more positive news emerge globally.”
|Net sentiment in August 2016||Month-on-month % change||Year-on-year % change|
|Emerging Market Shares||15.92%||8.63%||6.49%|
|UK Corporate Bonds||-2.43%||11.40%||-20.04%|
|Average (excluding cash)||5.09%||8.13%||-6.82%|