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Investor sentiment in UK property falls as gold rises

Investor confidence in UK property saw the second-biggest month-on-month downward swing this month, down six percentage points, according to the Lloyds Bank Private Banking Investor Sentiment Index.

Property did, however, retain its status as the highest-scoring asset class at 46 per cent.
Despite its overall high score, net sentiment around UK property is at its lowest year-to-date in 2014, together with US shares and UK corporate bonds at 5.5 per cent and 10 per cent respectively.
According to the monthly survey, the net sentiment among investors in the Eurozone saw the biggest increase in Investor Sentiment, rising two points to -18 per cent, following the eight point drop the asset class suffered last month.  Despite the swing in sentiment, Eurozone shares are still sitting in negative territory, continuing to be the only asset class that is viewed negatively on a net sentiment basis by investors.
UK shares and emerging markets were the two other classes to see a net increase this month, while gold saw a one point positive swing, making it the only asset class to hit a new high net sentiment score for the year.
The fall in UK property for the second month in a row has narrowed the gap in investor sentiment between UK property and UK shares, sitting at 46 per cent and 39 per cent respectively.
Ashish Misra, head of investment policy at Lloyds Bank Private Banking, says: “Investor sentiment in UK property has reduced this month which could be a reflection on the market as some moderation was always on the cards. This is in contrast with the rise in interest in gold which is at its highest level this year, an interesting trend given the mix in market conditions across Europe.
"Eurozone shares are the asset class moving in the most positive direction this month, with a surprisingly positive trend following a drop last month, how it evolves over the coming months could be one to watch.”
Despite the overall figures across all asset classes have remained relatively stable, the overall average net sentiment figure of 15 per cent is still an 11 percentage point improvement on the corresponding figure from this time last year.

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