China growth gives UK edge in services and goods sectors

The UK stock market feels less volatile, and there are tangible signs of stabilisation and incremental improvement in the global economy.

Data continues to show domestic inflation is under control, with readings now below the Bank of England’s target rate of 2% for the first time since September 2007. Notably, figures released by the Office of National Statistics showed unemployment claims rose the least in the year in June, leading to hopes the worst of the recession may have passed. Encouragingly, Germany, France and Japan all officially moved out of recession in the second quarter, and expectations are that the UK will follow in Q3. Given the proportion of earnings UK companies derive from overseas, these improvements i...