Credit Suisse cuts office stocks

Credit Suisse’s equity strategists upgraded non-London focused UK housebuilding stocks while cutting back on European utilities as part of changes to recommendations following the Brexit vote.

The broker’s only remaining domestic UK “underweight” is on REITs, particularly offices, which it sees as the most sterling- sensitive sector.

Share prices are also not discounting a sharp enough fall in commercial property values, Credit Suisse says.