UK stocks have widely outperformed global equities this year, in a sign that investors are hunting for bargains as they exit higher-growth businesses whose appeal has been tarnished by expectations of interest rate rises.
A broad MSCI index tracking UK companies has added 3.6 per cent in dollar terms since the end of 2021. That gain puts British stocks more than 9 percentage points ahead of the broader MSCI World index, which has fallen almost 6 per cent over the same period.
If current trends were to continue through to December, this would mark the first year since 2011 that UK equities have beaten the rest of the world, according to FactSet data.