EU debt crisis hits UK investor confidence

The ongoing fears of a financial meltdown in the eurozone have had a significant impact on UK investor confidence over recent months, with 70 per cent now believing this issue is the single largest threat to the UK economy.

Research carried out by Skandia has revealed confidence in the UK's financial outlook has taken a hit as a result, with the findings showing a ten per cent fall in confidence over the last quarter.

Peter Mann, chief executive at Skandia UK, commented: "Who would have predicted the unprecedented events witnessed across global markets, including the US debt crisis, EU debt crisis, and riots across Europe and at home."

He noted that these events have all taken their toll on adviser confidence over recent months.

The news follows comments by Mike McCudden, head of retail derivatives at Interactive Investor, who claimed many investors are now pulling out the markets ahead of the festive period, with many hoping the new year will bring some much-needed confidence back to the trading outlook.