Leigh Harrison on the obstacles facing the UK

The UK equity market appears to be entering a new phase, as the Bank of England begins to rein in some of its extreme stimulus measures. In this environment, share prices can no longer rise on pure liquidity and, indeed, the market’s progress has been more muted in recent weeks. Meanwhile, we are seeing a change in leadership, with defensive areas starting to outperform. Is this just a function of relative valuations following their poor performance in 2009, or does it reveal a deeper malaise in the economy, risk appetite and the market? Looking at the economic fundamentals, recent da...