UK Investors Shun Home Market for US in 2026 Outlook

UK Investor Confidence Hits Low for 2026

A new survey from CMC Markets reveals significant pessimism among UK investors regarding the domestic market's performance in 2026. A substantial portion is now looking to international markets, particularly the United States, for better returns.

Overview of Investor Sentiment

The survey reported a bleak outlook, with the UK market rated at an average of just 4.3 out of 10 for 2026. Notably, 22% of respondents expressed extreme pessimism. Only 3% believe the UK will be the strongest performing market, putting it behind the US (43%), the Far East (26%), and Continental Europe (10%).

Economic Factors and Market Impact

According to Laurence Booth of CMC Markets, sentiment has been dampened by a challenging 2025 and a poorly received November 2025 Autumn Budget. Factors such as higher tax rates and frozen income tax thresholds are pushing investors to seek opportunities abroad, making tax-efficient trading products more appealing.

Summary

Prevailing uncertainty and unfavorable fiscal policies are steering UK investor capital away from the domestic landscape. This trend suggests a continued preference for international markets, with investors closely watching for policy changes that could restore confidence in UK assets.

FAQ

Q: Why are UK investors pessimistic about the 2026 market outlook?
A: Sentiment is low due to a challenging 2025, a poorly received Autumn Budget, higher taxes, and frozen income tax thresholds.

Q: Which markets are UK investors favoring instead?
A: The United States is the top choice (43%), followed by the Far East excluding Japan (26%).

Source: Investing.com