The UK stock market has shaken off the slump and hit new highs, and may finally be favored by the market

(1) Britain's FTSE 100 index hit a record high on Tuesday, raising hopes that the UK stock market may finally shake off its long-year underperformance as investors wait for an opportunistic dip and the UK economy rise pick up. (2) A few months after some international rival indices began to hit new highs, the UK benchmark stock index hit a new high of 8,076.52 points, surpassing the previous high set in February 2023. (3) This brings the FTSE 100 to 4% year-to-date pump – but still trailing the top pump 6% of the pan-European STOXX 600 and the 7.5% and 7.8% pump of the French CAC 40 and Germany's DAX. (4) The FTSE 100 has long underperformed – whether because of the uncertainty surrounding the UK economy since the 2016 vote to leave the European Union, or because the FTSE 100 has significant shortcomings compared to other comparable indices. (5) The FTSE 100 is heavily weighted in essential resource stocks, benefiting neither from the artificial intelligence (AI) frenzy in the US market nor from the surge in luxury stocks. But some of the factors driving overseas markets have begun to wane, while pump higher commodity prices, a weaker pound, a rise recovery in the UK economy and low valuations are attracting some investors back to London-listed stocks. (6) "British equities have been cheap for some time, relatively cheap relative to the past, cheap relative to global markets, and especially cheap relative to the US." David Cumming, head of British equities at Bull Investment Management, said. He also said that a new high in the FTSE 100 could mark a new dawn rather than a flash in the pan. The catalyst will be an upturn in UK economic data and we are recovering rise. ” (7) According to the London Securities exchange Group (LSEG), the UK stock market is trading at a price-to-earnings (price-to-earnings ratio) of less than 11 times, compared to 13 times for the STOXX 600 and 20 times for the S&P 500. (8) "The FTSE 100 has recently benefited from the pumping of large technology stocks, the recovery in commodity prices and a more longer sector composition. A weaker pound is also an additional favourable information. Emmanuel Cau, head of European equity strategy at Barclays, said, "We are also seeing signs of dynamism in the UK economy, with activity indicators such as purchasing managers' indices (PMIs) and consumer confidence all picking up recently." Cau said. (9) Kathleen Brooks, director of research at XTB, believes that the UK's quality stocks are coming back into focus, and she recently mentioned in a report that engine maker Rolls-Royce (Rolls-Royce) has pumped 40% this year. In addition, a flurry of M&A activity has also boosted the UK stock market, especially mid-sized companies