Aviva's Murphy: UK equities to struggle in 2015

UK equities will struggle to make significant gains as a range of forces will weigh on sentiment in 2015. Investors should shelter in stocks undertaking self-help, argues Aviva Investors' Chris Murphy.

Troubles on the horizon include the eurozone looking likely to slip back into recession, and emerging market growth, which seems lacklustre. Uncertainty over next year's UK general election result will also be another drag on the market in the first half of 2015. Nevertheless, the strong balance sheets and healthy growth prospects of many defensives, including pharmaceutical stocks, offer the prospect of good dividend growth. In terms of valuation, UK equities look more attractive than they have for much of this year, following recent market falls. Flight to quality We expect co...