British stocks will pick up momentum and see share prices improve as oil prices tick higher and the overhang from Brexit disperses, Barclays PLC (LSE:BARC) believes.
The UK has missed out on the artificial intelligence-led rally which began late last year, Barclays' boss of European equity strategy Emmanuel Cau noted.
However, he now reckons the market is beginning to catch up as the "steady rise of oil/commodities" means company earnings are improving.
Cau also believes this will provide "some backstop to depressed valuations".
He said: "UK co-ordination with the EU appears to be improving across both major parties, with elections looming, which could unwind some of the risk premium placed on UK markets.
"With multiples looking depressed, inbound M&A and buybacks are seeing a pick-up, which could help valuations."