UK Stocks Seen as Safe Haven as AI Boom Loses Steam
UBS economist Arend Kapteyn says UK stocks may offer shelter if worries about the AI boom slowing grow. The FTSE 100 is up 7.3% this year.
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what happened
According to UBS economist Arend Kapteyn, as reported by Market Talk, British shares could serve as a refuge for investors worried that the boom in artificial intelligence may be cooling. Technology companies account for less than 1% of total profitability across listed UK stocks, compared with 6% in Europe.
Kapteyn noted that the UK has historically been the best-performing region when technology lags. He also pointed to more attractive UK valuations versus European peers, saying the median UK company now earns a higher return on investment than its European counterpart in every sector except health care and utilities.
The FTSE 100 was down 0.25% on Wednesday and has gained 7.3% so far this year.
why it matters
For markets, this signals a possible shift in focus: as concerns over AI stocks grow, capital could move toward more defensive sectors and regional indexes with little exposure to technology. This is an analyst view, not a forecast for the index.
market impact
UK stocks (FTSE 100): seen as defensive as tech weakness weighs on the broader market
- FTSE 100 pressure up — investors seek a defensive alternative outside technology companies
instruments
sources
- U.K. Stocks Offer Safe Haven For Investors — Market Talk, 28 October 2026 at 11:02 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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