Growth in US stock markets has outstripped the UK, with the benchmark FTSE 100 lagging behind with growth of just 3pc in the year so far.
The London Stock Exchange has been battling to stem an exodus of companies defecting to New York in a bid to tap into a deeper pool of capital.
Building materials company CRH, betting giant Flutter Entertainment, packaging supplier Smurfit Kappa and travel group Tui are among the companies that have moved their main listing to the US in recent months.
However, there are signs UK stocks are starting to regain some ground. The FTSE 100 has risen 4.2pc in the last month, compared to a 3.1pc gain for the S&P 500.
Strong investor confidence comes despite signs of lingering inflation that have prompted markets to pare back hopes of rapid interest rate cuts by the Federal Reserve.
Figures published on Friday showed the personal consumption expenditures (PCE) inflation, the Fed’s favoured index, stood at 2.5pc in February, up 0.1 percentage points from a month earlier.
The reading, which was driven by higher fuel prices, was in line with forecasts. However, it remains above the central bank’s target of 2pc.
In an appearance at the San Francisco Fed on Friday, chairman Jerome Powell said the latest figures were “pretty much in line with our expectations”, adding: “We don’t need to be in a hurry to cut.”
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