Falling oil price has given UK Equity Income sector much needed boost

The UK Equity Income sector has performed better over the past six weeks versus the wider market, ha...

The UK Equity Income sector has performed better over the past six weeks versus the wider market, having taken a battering since the start of the year. The principal catalysts have been a falling oil price, having retreated by +$15 since the start of July, and a reversal of the long commodities/short financials trade that has dominated investment thinking for some months. While investors remain preoccupied with the reality of weaker global economic growth, we expect the oil price to remain crucial for equity sentiment, especially if it settles at lower levels. As the economy trends downwa...