New KPMG indices reveal underlying sentiment towards UK economy.
Yael Selfin, KPMG’s Head of Macroeconomics, discusses how the creation of two new KPMG stock indices will help gauge investors’ appetite for UK exposure.
Defying the pre-vote predictions, the major UK stocks indices have surged since the EU referendum. Yet few attribute its performance to a groundswell of optimism about the broader UK economy.
Yael Selfin explains that while the performance of the FTSE 100 (and to a lesser extent the FTSE 250) is good news for investors and savers, it is little use as a barometer of sentiment towards the UK economy. Therefore, to gauge investor’s appetite for UK exposure, KPMG has developed two stock indices that strip away the international effect.
Anne-Marie Spalding contributed to the production of this report.