- "We think the UK market’s recent outperformance relative to Europe ex-UK has probably run its course."
- "The UK has benefited from “safe haven” status during the euro area’s sovereign crisis, while also enjoying better earnings momentum. An unwinding of a large speculative short position against sterling has also helped it rise against the euro."
- "All of these factors have now reversed, in our view. The euro area economy has proved to be more resilient than many had believe, while the impact of the UK’s fiscal consolidation has yet to be felt. There are signs of a slowdown in the UK housing market too."
- "Above all though, it is the shift in earnings momentum in favour of continental Europe that suggests to us that investors should now be overweighting continental European equities relative to the UK, in both local and common currency terms."
- "The UK has benefited from “safe haven” status during the euro area’s sovereign crisis, while also enjoying better earnings momentum. An unwinding of a large speculative short position against sterling has also helped it rise against the euro."
- "All of these factors have now reversed, in our view. The euro area economy has proved to be more resilient than many had believe, while the impact of the UK’s fiscal consolidation has yet to be felt. There are signs of a slowdown in the UK housing market too."
- "Above all though, it is the shift in earnings momentum in favour of continental Europe that suggests to us that investors should now be overweighting continental European equities relative to the UK, in both local and common currency terms."
Nomura European Strategy Weekly 20100813
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