The devaluation of the sterling is having a marked impact on the UK economy and the country’s contribution to Europe’s economic performance, data shows.
S&P Dow Jones Indices (SPDJI) says the UK was the largest contributor to October’s fall in the S&P Europe 350 index among major economies in euro terms.
While the UK’s local stock market performance was positive, it declined by 0.81% in euro terms.
Yesterday, UK Investment Association data showed redemptions from UK equity funds surged in September, with £620 million (€695 million) pulled by investors.
More broadly than the UK, SPDJ I noted other aspects of stock market performance in October, which included the stronger performance of financial stocks.
Financials were the strongest performer, rising 6.35% while real estate stocks fell 8.31%, which SPDJI said was consistent with the broader expectation of higher interest rates.
Bond markets were also rattled by a two-year high in euro inflation and also by the implication that the European Central Bank’s stimulus efforts may diminish in the New Year.
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