UK equities have underperformed this year, with the FTSE 100 trading at a forward P/E of 11.4x, below its historical average. UBS warns that while the UK economy may improve due to fiscal stimulus, earnings recovery is slower than expected, forecasting a -3% decline for the current year and modest growth of +5% in 2025. Concerns over commodity prices and global growth risks further cloud the outlook for UK stocks, particularly in the financial and energy sectors.
