Investor confidence in UK bounces back to 2016 high after Brexit vote fall

William Turvill
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EU Referendum - Signage And Symbols
The UK voted to leave the European Union on 23 June (Source: Getty)

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.

Read more: Brexocalypse now: Shares and property hit as investor confidence plummets

“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.”

Read more: Investor confidence index drops to four-year low after Brexit vote

Net sentiment in August 2016 Month-on-month % change Year-on-year % change
UK Shares 8.69% 23.98% -28.57%
Eurozone Shares -37.60% 10.67% 6.28%
US Shares 10.52% 7.13% -2.89%
Japanese Shares 3.98% 5.08% 9.84%
Emerging Market Shares 15.92% 8.63% 6.49%
Government Bonds" -3.71% 12.25% -23.57%
UK Corporate Bonds -2.43% 11.40% -20.04%
UK Property 7.26% 13.02% -47.11%
Gold 41.54% -12.04% 30.14%
Commodities 6.68% 1.13% 1.27%
Cash -34.04% -12.14% N/A
Average (excluding cash) 5.09% 8.13% -6.82%