Beating the UK drum
STOXX 600 +0.2%
Admiral rallies, Orsted falls
Wall St futures higher
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BEATING THE UK DRUM
British stocks have been relative outperformers in recent weeks, benefiting from sector composition and avoiding some of the volatility seen in other regions.
The FTSE 100 .FTSE has gained 9.5% in the last six months, versus a 4% gain for the broader STOXX 600 .STOXX
Analysts at Deutsche Bank continue to like Britain's main index for its risk/return profile and see the index hitting 8,700, implying over 5% upside from current levels.
The German bank names three reasons for its upbeat outlook:
1/ Sector weights - DB favours Value sectors - Staples, Utilities, Real Estate, Materials - over Growth, such as industrials.
2/ Political & economic uncertainty - DB expects the discount in UK stocks to fade as it's one of the countries with the lowest political uncertainty in Europe.
3/ Valuations - DB notes the FTSE is not only cheap compared to Europe, but cheap by historical standards.
(Samuel Indyk)
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THURSDAY'S OTHER LIVE MARKETS POSTS:
WEAKNESS IN EUROPEAN CONSUMER STOCKS EXCESSIVE - UBS CLICK HERE
STOCKS SAUNTER HIGHER CLICK HERE
FUTURES POINT TO POSITIVE OPEN CLICK HERE
DATA TESTS LOOM FOR FED, BOE CLICK HERE
Rates and inflation Rates and inflation https://tmsnrt.rs/3U8HdD2
UK inflation inches above 2% in July UK inflation inches above 2% in July https://reut.rs/4fCwhZb
European equities continue recovery https://reut.rs/3SQMd09
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