UBS's Magill: UK cyclicals to outperform

Equities saw a relatively indiscriminate sell-off in Q4 of 2018, with increased volatility and widening valuation spreads.

This was due to an increasing focus on US-China trade wars and on the performance of the Chinese economy itself, which in turn led to lower global growth expectations.  In addition, despite moderating global growth, there was a perception of continuing interest rate tightening in the US, which would have global implications.  Lastly, concerns over a no-deal Brexit impacted European markets negatively and the UK in particular. Brexit Blog: Fitch may cut UK's AA rating on no-deal uncertainty At present, UK stock valuations are low compared to historic levels; shares have only trad...