Beleaguered UK equity markets still face uphill Brexit battle

Sector has been hit hard by Covid-19

Taking a brief look at global equity markets, particularly those in the US, there is little evidence the world is still in the grips of a pandemic and staring down the barrel of the deepest recession in recent history.

Since mid-March lows, equity markets have for the most part soared, having been buoyed by unprecedented fiscal and monetary spending by governments and central banks around the world in an effort to prevent economic collapse. The rally has been particularly noticeable in tech stocks, with the US Nasdaq 100 returning nearly 20% year to date. However, evidence suggests retail investors now appear to think the rally cannot be sustained, having withdrawn capital from equity funds in large volumes in June after one of the best quarters in at least a decade for equity markets. Income huntin...