A turning point for UK equities as the index reaches fresh highs

Fidelity

The FTSE 100 has recently reached record territory, underpinned by a number of overlapping dynamics that together point to a recalibration of sentiment towards UK stocks. Corporate earnings, particularly in the financial sector, have surprised on the upside, precision margins for banks in response to elevated interest‑rate environments have improved, and data from the UK consumer and services sectors continue to beat expectations, combining to shape a more bullish backdrop.

At the same time, geopolitical tailwinds, most notably a sharp rise in oil prices driven by supply constraints, have amplified the energy and commodity‑exposed components of the index, while trade‑optimism between the US and China has reinforced risk appetite globally.

The UK market now trades at valuations that remain moderate relative to some global peers, and dividend yields continue to appeal. This could make the FTSE 100 more compelling for holders seeking yield and value rather than for those chasing large‑scale growth.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

UK markets hold ground as commodities and banks show resilience

UK markets edge up as mining stocks gain and banks hold steady amid firm commodity prices and stable economic signals.

Fidelity Special Values plc delivers 37.2% price growth in “stellar” 2025

Fidelity Special Values PLC published its December 2025 factsheet, reporting rolling 12-month NAV and share price returns of 26.4% and 37.2% respectively, ahead of the benchmark.

FTSE recovery signals return of confidence after tariff reprieve

FTSE indices recover as tariff risks ease, renewing investor focus on UK equity fundamentals.

Why the FTSE is holding steady as UK data weakens and global risks rise

The FTSE is steady despite weaker UK data, as investors respond to a stronger pound and rising global risks.

Outlook and strategy for UK investing in 2026

Alex Wright, portfolio manager of Fidelity Special Values PLC, sets out his outlook for 2026 and explains why UK equities continue to offer attractive valuation opportunities.

Search

Search