Momentum within the UK’s flagship equity benchmark has started to tilt in favour of globally exposed segments, with energy and Asia-linked financials in particular drawing renewed institutional focus.
Energy majors listed in London have been the most immediate beneficiaries. With OPEC+ signalling a slower pace of supply increases, oil prices have found support, improving visibility on upstream earnings and cash flow. For firms like BP and Shell, this comes at a time when investors are increasingly valuing energy exposure that is both diversified and anchored by strong dividend policy.
Banks with exposure to Asia have also come back into view. As geopolitical rhetoric around US-China trade begins to soften, and policymakers in Beijing continue to hint at economic stabilisation, the underlying drivers for groups like HSBC and Standard Chartered appear to be turning more constructive.
Layered over this is a pound that remains soft versus the dollar, a feature that directly enhances translated revenues for UK multinationals. For many FTSE 100 constituents, this currency tailwind reinforces the relative earnings strength that international-facing firms can deliver, particularly in volatile macro regimes.
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.
