It might seem surprising that the UK stock market has outperformed its peers recently, given the ongoing pressure on commodity prices. After all, the share of firms in commodity sectors is relatively large in the UK. This can mainly be explained by the weakness of sterling. This year, we forecast sterling to depreciate further against the US dollar, although not against the euro and the yen. Meanwhile, we expect commodity prices to recover. Against this backdrop, we think equities in the UK will outperform those in the US, but not those in the euro-zone and Japan.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services