British industrials attractive relative to global competitors

UK GROWTH

Summer is not always dull in markets, despite low trading volumes.

Those that stayed at their desks in 2009 were rewarded with a gain in the FTSE 100 of more than 20% over the third quarter. That confounded the stock market historians, and is shaping investor views this year. Last year’s experience, combined with currently low valuations and good company news, is driving the bulls. But, bears are encouraged by the chaotic European response to the Greek crisis, and the weak technical position of many shares after the second quarter sell-off. Current market worries such as BP’s oil spill and European bank stress tests, should at least be partly resolve...