DWS upbeat about UK equities

group predicts gentle recovery in world economy with total gain for UK equities of 7.5%

Higher oil prices, a weaker dollar and the Sars virus are the three main threats DWS sees to its scenario of a gentle recovery in the world economy and markets. Even so the group is forecasting a total gain from UK equities for the year of 7.5%, with 5% from gilts and 2% from sterling. The oil price is in a trading range of $26-$28 per barrel and Johanna Kyrkland, head of asset allocation at DWS Investments, told Investment Week's Markets Forum this month she would feel more comfortable if it were to fall to $20. At its current level the group sees the oil price as the biggest threat t...