Britain’s stock market is outperforming Europe, with the FTSE 100 hitting record highs and gaining nearly 10% this year. New regulations and a strong pound are attracting foreign investors, with the index up 18% in dollar terms. Large defensive and resource companies are driving growth. UK-US trade deal benefits UK market.

FTSE 100’s valuations have lagged compared to Europe, but are now catching up. The market is seeing a shift with a higher price-to-earnings ratio and a weak pound benefiting exporters. Despite the UK economy slowing, the FTSE’s performance is improving. UK equities have seen a net outflow of $20 billion.

The UK market’s success is attributed to a calmer environment compared to uncertainty elsewhere. The FTSE’s performance is linked to the currency and is in line with the rest of Europe. Despite challenges, the UK market is showing resilience and potential for growth.

Read more at Yahoo Finance: Foreign investors are warming to London’s unloved stocks