Insights on the UK market outlook from the Deutsche Numis equity sales team
With the tariff uncertainty of recent months making for extreme fluctuations in global markets, we asked our equity sales team to give us their insights on what comes next for the UK stock market.
Marcus Chorley, Chairman, Equities, Deutsche Numis
“The UK stock market remains cheap, has high quality companies, and should look increasingly attractive throughout the four-year Trump administration given the demonstrable policy uncertainty in US companies.”
Niamh O’Connor, Director, Sales, Deutsche Numis
“The UK market was arguably rocked by the changes introduced in the Autumn Statement; however, a series of robust Q1 earnings reports, alongside anticipated rate cuts, has contributed to a more positive outlook for UK markets. Q2 and beyond will test businesses on how effectively they can sustain the momentum and navigate the ongoing macro uncertainties.”
Greg Knox, Director, Sales, Deutsche Numis
“Uncertainty in the market spurred by changing tariff announcements makes it difficult to predict winners. High quality businesses will be favoured; this is not the time to have both financial and operational leverage.”
Ulick Burke, Director, Sales, Deutsche Numis
“UK domestic companies are well-positioned to perform - UK is a service economy so less impacted by tariffs, household savings are high at 12%, we’ve got lower oil/gas/energy driving down inflation expectations and in turn UK interest rates, which reflects in a stronger GBP but also a lower cost of capital for UK assets.”
Alexander Wace, Director, Sales, Deutsche Numis
“The US could see inflation as a result of tariffs, limiting the Fed’s ability to cut rates. In contrast, Europe should not have the same inflationary pressure, allowing the ECB and BoE to cut rates. This could provide a scenario where European equities can sustainably outperform the US.”
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With the tariff uncertainty of recent months making for extreme fluctuations in global markets, we asked our equity sales team to give us their insights on what comes next for the UK stock market.
Marcus Chorley, Chairman, Equities, Deutsche Numis
“The UK stock market remains cheap, has high quality companies, and should look increasingly attractive throughout the four-year Trump administration given the demonstrable policy uncertainty in US companies.”
Niamh O’Connor, Director, Sales, Deutsche Numis
“The UK market was arguably rocked by the changes introduced in the Autumn Statement; however, a series of robust Q1 earnings reports, alongside anticipated rate cuts, has contributed to a more positive outlook for UK markets. Q2 and beyond will test businesses on how effectively they can sustain the momentum and navigate the ongoing macro uncertainties.”
Greg Knox, Director, Sales, Deutsche Numis
“Uncertainty in the market spurred by changing tariff announcements makes it difficult to predict winners. High quality businesses will be favoured; this is not the time to have both financial and operational leverage.”
Ulick Burke, Director, Sales, Deutsche Numis
“UK domestic companies are well-positioned to perform - UK is a service economy so less impacted by tariffs, household savings are high at 12%, we’ve got lower oil/gas/energy driving down inflation expectations and in turn UK interest rates, which reflects in a stronger GBP but also a lower cost of capital for UK assets.”
Alexander Wace, Director, Sales, Deutsche Numis
“The US could see inflation as a result of tariffs, limiting the Fed’s ability to cut rates. In contrast, Europe should not have the same inflationary pressure, allowing the ECB and BoE to cut rates. This could provide a scenario where European equities can sustainably outperform the US.”