UK equities: fully valued

Article Abstract:

UK equities as measured through the FT-SE 100 run more risks of dropping than of rising, according to BZW. The market appears to be fully valued and risks could emerge from the Nov 1995 Budget and from changes in interest rates. A revival of economic growth in 1996 could lead to a rise in yields for government securities, which in turn could affect share prices. Loose fiscal policy would make it more difficult to reduce interest rates. Some sectors may still perform well, especially those seeing a drop in costs.

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UK equities: further to go

Article Abstract:

Morgan Stanley sees the UK economy as likely to renew economic growth for a number of reasons such as loose monetary policy. The pound sterling also also relatively cheap, tight fiscal policy has ended, and there is buoyant cash flow in the private sector. Equities are still in a better position than government securities, but the difference is narrowing. A new high looks likely for the UK market in 1996. Consumer recovery would help retailers, the construction industry and housing.

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Stable economy, unstable equities

Article Abstract:

Issues relating to the British economy and stock market are examined in detail. Macroeconomic stability appears to be greaer, but stocks are affected by instability.

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Subjects list: United Kingdom, Economic aspects, Stock-exchange, Stock exchanges, Exchanges
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