Record quarter for UK equity income market after optimism soars

Increasing optimism over the future direction of the economy helped propel the UK equity market to a record quarter.

The FTSE All-Share index returned 22.4%, making UK equities the best-performing asset class over the period. Improving economic data provided investors with further evidence that the worst of the economic crisis had passed, fuelling demand for risk assets. A better-than-expected corporate earnings season and the continued provision of government liquidity further boosted confidence in equities. The banking sector continued to recover strongly during the quarter driven by both buoyant trading conditions, particularly within investment banking markets, and receding fears over the need for ...