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.
