UK stocks have had a bumpy run with the falling 4.4% over the past six months. It’s still up 8.
81% over one year, but why the recent reversal? As ever, there’s a host of factors at play. China is a big one. The world’s biggest economy continues to struggle despite a string of stimulus packages from Beijing.
I’ve seen a direct impact on a number of FTSE shares in my self-invested personal pension (SIPP). During the boom years China consumed 60% of global metal and mineral production. That source of demand has slipped, hitting revenues at mining giant .
Chinese shoppers are also consuming less in a blow for luxury fashion house . These two stocks have plunged 18.37% and 48.
05% respectively over 12 months. The FTSE 100 is down but it’ll be back The run-up to the first Labour Budget in 14 years also hit the FTSE, as businesses and consumers worried about tax hikes. On Friday, we saw the impact on the UK economy.
After climbing 0.7% in Q1 and 0.5% in Q2, GDP growth slumped to just 0.
1% in Q3. In September, the economy actually shrank 0.1%.
The pain could drag on as businesses face £25bn of national insurance hikes from April. Another SIPP holding, , slipped as a result. It employs more than 50,000 people in the UK and higher labour costs will squeeze margins.
Its shares are now down 16.59% over 12 months. The US presidential election result boosted US markets but had a mixed reception in the UK, Europe and beyond, as investors fret over Donald Trump’s proposed tariffs.