Deep Dive: China's reopening benefits UK large caps

US dollar strength a key factor

clock • 4 min read

The end of China’s zero-Covid policy offers a clear boost to the UK large-cap market, as a result of the sector's higher than typical international exposure.

Daniele Antonucci, chief economist Quintet Private Bank, said 80% of FTSE 100 companies receive the vast majority of their earnings from overseas, with one of the key markets being China and the Asian consumer. The overexposure of UK large-cap firms to other regions means that global macroeconomic conditions play a key role when assessing any investment in these companies, Antonucci said. China's economic growth was stunted by the extended lockdown imposed by Beijing, negatively impacting firms with revenues exposed to the country, which includes several businesses in the FTSE 100. ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot