‘The lion is waking’ as blue chip groups advance

BRITISH blue chips are enjoying a “steady advance” which may signal a sustained recovery for the world economy, according to a senior figure at Coutts.

By The Newsroom

Published 8th Jun 2013, 01:01 BST

Alan Higgins, the chief UK investment officer at Coutts, said assets that stand to benefit most from a global recovery, will continue to take over market leadership.

Mr Higgins said: “For so-called safe haven assets like Government bonds that are vulnerable to a more optimistic environment, further weakness looks likely. For the time being, though the lion is waking, it is still nursing a hangover from the global financial crisis.

“All of the liquidity being pumped into the global economy through quantitative easing has yet to feed the animal spirits of households and businesses. That’s likely to remain the case for the rest of the year, and look for a continued – though modest – outperformance of equities versus bonds.”