Short-selling of domestically focused UK companies has reached the highest level since the mini-budget in 2022, as investors turn bearish on the economy in contrast to the rest of Europe.
The latest market research shows that short interest on stocks on the FTSE 250 has increased significantly this month to levels last seen in the aftermath of Liz Truss’s short-lived premiership more than two years ago. Short interest refers to the number of shares being bought and sold by investors in anticipation of the stock price falling.
Figures from Barclays show that UK stocks also suffered another month of capital outflows or selling in February, with an estimated outflow of £3.5 billion this month and more than £5 billion so far in 2025.
“Sentiment on domestic UK businesses, which fell after the autumn budget last year, is showing no signs of dissipating despite the already notable underperformance of UK small and medium-sized…
