After the UK released its Q2 GDP showing growth of 0.3%, the FTSE 100 edged upward and the pound strengthened modestly against the dollar.
Investors are responding to the affirmation that the economy has not stalled. That subtle reassurance is enough to shift flows back toward UK equities, especially in sectors with inherent leverage to domestic cycles.
At the same time, Labour’s messaging (especially from Keir Starmer) has become fodder for the market. Every speech or hint at fiscal or regulatory change is being assessed for what it might mean for taxation, public spending, industrial policy, and business sentiment. Those signals could swing expectations, particularly for capital-intensive or regulated sectors.
In the background, the Bank of England faces tension. Inflation is cooling and the labour market shows signs of loosening, suggesting space to ease. Yet global inflation pressures and the path of the US Fed make any pivot risky.
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.
