UK stock market hits record highs due to improving economy and increased M&A activity

From Morningstar: 2024-05-23 06:03:00

The UK stock market is rallying, with the FTSE 100 and Morningstar UK index hitting record highs due to an improving economy and increased M&A activity. Rolls-Royce, Antofagasta and NatWest are leading the gains. The rally reflects a global shift towards UK markets and sectors, with exuberance around the US economy easing. Several large UK companies are up for takeover bids, signaling a domestic revival in the UK stock market, where 25% of revenue is derived domestically. While the UK economy is expected to grow in 2025, weak labour productivity remains a concern. The Bank of England may delay rate cuts due to high services inflation. Despite the rally, UK markets still lag behind US, European and Japanese indices, with potential for growth in small and mid-cap companies.



Read more at Morningstar: Why is The UK Stock Market at Record Highs?