This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

City Investors' Confidence In UK Economy Rises Dramatically

LONDON, December 27, 2012 /PRNewswire/ --

  • Over two thirds of fund managers say they expect the UK economy to improve in the next 12 months
  • Sentiment correlates closely with movements in the market
  • Q4 spike in optimism makes confidence highest since survey began

New research from leading spread betting and CFD provider, Capital Spreads, has found that City investors' confidence in Q4 2012 has risen dramatically from the gloomy sentiments in Q3 2012, with 69 per cent of fund managers believing that the economy will improve in the next 12 months, whilst only 8 per cent predict that the economy will weaken.

The survey results reflect the more bullish mood in the markets and suggest, with the UK recently bouncing back from its double-dip recession growth fund managers appear to believe that a meaningful recovery in the UK economy is imminent. This quarter's results are in fact the most positive since the survey's inception, heralding a surge in optimism for the year ahead.

What is even more interesting to note is that the level of confidence seems to be closely correlated to rises and falls in the FTSE 100.

Capital Spreads' Capital Perspectives Survey, conducted in November 2012 which polled fund managers from 200 of the City's major investment houses, with collective assets under management in excess of $10 trillion, found that their optimism paints a significantly more positive picture to Q4 2011, when only 35 per cent were optimistic about the UK's economic prospects and 19 per cent said the economy would contract.

Angus Campbell, Head of Market Analysis at Capital Spreads, said: "It is clear that rising and falling markets have a corresponding effect on and a very close correlation to investor sentiment. During bull markets we all feel better about the economic prospects going forward, but the exact opposite when markets are declining.  As we head towards the end of 2012 and as the FTSE 100 has rallied higher over the summer, there's clearly renewed confidence about the UK's economy, however as we've seen from the past this can turn on a sixpence and if the markets start to head lower again we can expect to see confidence take a dive too.

"With so much at stake in terms of the ongoing eurozone crisis, uncertainty over the US fiscal cliff and the recent downgrade by the OECD to not just their UK's GDP forecasts but their expectations for global growth there's every chance we could see this level of confidence decline in the early part of 2013 and it will be interesting to see if this is preceded by a fall in the FTSE 100."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs