Economists and financial services experts are keenly monitoring the UK stock market as it slowly recovers from a four-month low. The top share index rose last week to 1.2% meaning that it was just 1.5% down overall for the week. The British pound has also continued a slow but steady recovery. Banking stock boasted the highest rises with shares in Lloyds and Barclays up by 6% and 4% respectively.
UK and global markets were overshadowed by fear as more than £700 million pounds was pulled out of UK equity and additionally Europe experienced outpours amidst concerns over the referendum and a possible exit. According to figures from Bank of America Merrill Lynch Global Research, investors are opting for gold and government bonds as safer assets. Thomson Reuters figures show that funds raised by UK businesses have dropped to £2.3bn this year, down from £8bn in the first half of this year and last.
At the weekend, two polls were undertaken which showed that the “in vote was regaining the lead with the “out” campaign lessening.
A spokesperson for VivaLoans commented “It is clear from the figures that people have started to panic a little and pulled out of what are deemed risky UK markets ahead of the EU referendum. Investors are looking to gold stocks and government bonds for safer investments which are undoubtedly impacting on the figures. Whether we vote to stay in or leave the EU, a lot of work is needed to boost the stock market and increase confidence in UK markets so that we see a continual rise in figures going forwards.”
Viva Loans are a responsible free credit broker with a reputation for finding the most suitable short-term financial help when you need it the most. For more information, please visit: www.vivaloans.co.uk
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