Allianz's Simon Gergel on UK political risk

Pressure on UK equities

clock • 2 min read

Concern over Brexit has impacted the UK stockmarket, but is this justified?

There is considerable uncertainty over Brexit. This uncertainty - or possibly the eventual agreements on trade, customs and other issues - could impact consumer and business confidence, investment intentions and economic growth in the medium term.  There is also heightened political risk, as the Conservative government is weak and the party is divided over Brexit, while a left wing Labour Party has been gaining support. All of this has put pressure on UK equities, which are out of favour with global investors. In particular, many domestically-focused businesses that are most dependent...

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