Article Abstract:
United Kingdom stock prices have seen falls affecting smaller stock in particular, though larger stocks have also been affected. Investors could sell holdings in larger companies to cover problems elsewhere in their portfolios, and this would lead to further drops in the prices of larger stocks. Some sectors have been more resilient and they include financials, pharmaceuticals, telecoms and food retailers, but even they have encountered problems. Private investors run risks of being hit by panic selling. Meanwhile, real estate stocks have dropped in price since April 1998.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
There are indications of an economic recovery in the United Kingdom, and corporate expectations have improved since fall 1999, according to surveys by business associations. Prospects for corporate profits are improving, which could help stock prices. Recovery could also bring an increase in inflation rates which would affect yields of government securities and interest rates, which could have an adverse effect on stock prices. There are disagreements as to how far inflation may rise, and a strong pound sterling could depress inflation.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The UK FT-SE 100 is not likely to see a major rise, according to Goldman Sachs. The market should benefit from low inflation, profit upgrades and increased activity. There is a dispute as to whether the market is overvalued, but there is a tendency to see it as overvalued. The market alos faces a danger from rising yields for government securities (gilts) and could be hit by political uncertainty. Engineering, petroleum and housebuilding companies could perform well.
User Contributions:
Comment about this article or add new information about this topic: