JP Morgan reiterates 'overweight' on UK equities, sees multiple positives

Strategists at J.P.Morgan reiterated their 'overweight' stance for UK equities, pointing to their "very attractive" valuations, the highest dividend yields from among key regions and low beta to back up their case.

Among other things, that meant that skepticism about the UK trade because of the pressure on the UK consumer was wide of the mark.

Indeed, year-to-date UK equities were beating their global peers by 9.0% in US dollar terms and there was "more to go" even if one excluded Energy and Mining, they argued.

"The key attraction in our view is that the UK equity market offers one of the best hedges with respect to the potential continued repricing of bond yields," they added.

"After all, UK equities never benefitted from the asset reflation trade in the first place."