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Stocks picks Page 1

It’s hard to believe that 12 months have passed since the UK’s vote to leave the EU. Sterling remains weak against the Euro, Downing Street’s future hangs in the balance and the country is divided right down the middle. But the UK’s UK 100 is still offering a wealth of trading opportunities. Talk about resilience. This report identifies our ten favourite UK 100 stocks that could offer you ample profits over the coming three months.

The second quarter of 2017 has delivered yet more surprises for investors: not only the announcement of the UK snap general election but also the eventual Hung Parliament – the 3rd Western political surprise in under 12 months. Surely there’s nothing left that could top that? Au contraire. Below we preview the key events of Q3.

Brexit: Let’s be having EU

Official Brexit negotiations have finally begun, only two weeks after the UK election result. What was supposed to be a procession for the Conservative party ended in an embarrassing Hung Parliament, giving greater voice to the opposition and those who seek a ‘soft’ Brexit. These include members of Prime Minister Theresa May’s own cabinet. Can the government’s negotiating team, led by David Davis, get the talks off to a strong start?

Central Banks: Europe turns hawkish

While the US Federal Reserve has been gradually raising interest rates since December 2015, Europe has taken longer to warm to emerging hawkish rhetoric. However, Q2 saw some seismic changes from the Fed’s European peers. After months of speculation, the ECB began discussing tapering QE, with Italian lender Unicredit expecting process to begin in September, while in the face of rising inflation, the most policymakers at Bank of England voted for a rate rise since 2011. In fact, analysts at Nomura even see the BoE raising interest rates back to 0.5% from record lows of 0.25% as soon as August. Might Governor Carney finally pull the trigger?

US Politics: Trump trade all but over?

After a testing second quarter, the Trump administration is now no closer to key reforms than it was three months before. Its proposed Healthcare bill continues to be delayed from being presented to Congress by lawmakers, which has even prompted the IMF to lower their growth forecasts for the US as the proposed fiscal stimulus is still yet to appear. Can the administration overcome the odds and pull a fiscal rabbit out of its political hat?

On top of these key events, OPEC will have to react to falling Crude Oil prices when they meet in July and Angela Merkel looks to hold on in the German Presidential election. Who says excitement was over for another year?

Over the page we analyse the best and worst UK 100 performers of the year so far. Perhaps some of the names overleaf might surprise you. Could Q3 see a turnaround for the UK’s biggest utilities provider?

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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