Yahoo Finance COVID vaccine boosts UK investor confidence but Brexit fears still linger
The coronavirus vaccine rollout and lockdown easing have bolstered UK investors' confidence however fears still remain over the long-term impact of Brexit and the economic damage of the pandemic.
According to a new research commissioned by trading broker HYCM, 41% of UK investors are confident the vaccine rollout will benefit their investment portfolios.
The study of 735 UK-based investors, seen exclusively by Yahoo Finance, also showed the same percentage believe the easing of social distancing rules will boost to their investments.
Despite that, some 36% think that the pandemic will reduce the value of their investments, while 11% believe they will profit from it.
The UK’s vaccine rollout programme is still continuing at pace, with more than 70% of adults now receiving their first dose, the government has said.
At the time of writing, 37,726,924 million people have had their first jab and some 22 million have received their second, official data shows.
As Britain reaches these milestones, UK's health secretary Matt Hancock said the coronavirus vaccines have proven to be "effective" against the Indian variant, which has devastated India and several countries.
Watch: COVID vaccines effective against Indian variant
On Sunday, Hancock urged people to come forward for their second COVID jabs, as a new study by Public Health England showed that two doses of the vaccine offer greater protection against the strain in all age groups.
It comes after appointments for second doses were brought forward from 12 to eight weeks for those in the top nine priority groups, due to a surge in the so-called Indian variant of the virus.
Read more: 40% of UK firms expect fall in EU trade
While Britain officially left the European Union earlier this year, the long-term impact of it has been laid bare, with 33% of investors saying Brexit will harm their investments.
The UK's exit from the European Single Market on 1 January 2021 led to new trading rules with the EU that slowed the movement of goods and left some businesses struggling.
Earlier in May, the Office for National Statistics (ONS) revealed that imports of goods from the rest of the world in the first quarter of 2021 were higher than EU imports for the first time since it began collecting data in 1997.
A separate report showed four in 10 UK companies expect that their annual trade with the European Union (EU) will fall in the coming year in comparison to pre-pandemic levels, new research has shown.
According to figures from the Institute of Directors (IoD) some 60% of British firms are still finding it challenging to adjust to new trading arrangements brought on by Brexit.
Meanwhile, over a fifth (22%) of investors consider US president Joe Biden’s presidency to be positive news for their portfolios, compared to 8% who think it will harm their finances.
All the investors surveyed have investments in excess of £20,000 ($28,301), excluding their property, savings and workplace pensions.
Watch: What does a Joe Biden presidency in the US mean for the global economy?
