European fund managers have rotated out of blue-chip defensives in favour of more economically sensitive cyclical stocks as they call the end of the sovereign debt crisis.
Yields on 10-year treasuries have spiked back above 2.7% after US Q2 GDP data easily beat expectations, increasing the likelihood of a quantitative easing slowdown.
UK GDP rose by 0.6% in the second quarter, according to initial estimates - in line with analysts' expectations and double the 0.3% figure seen in Q1.