Despite the devaluation of sterling and underperformance of UK equities already witnessed as a consequence of Brexit, there is "still room for further losses" under a no-deal scenario - particularly for UK assets - according to MSCI research.
Since the 2016 referendum, the pound has lost 9% relative to a trade-weighted basket of currencies, while the UK long-term yield is significantly lower than it was in June 2016. In addition, equities have risen by just 17% over the period in sterling terms, in contrast to the MSCI World index which has gained almost twice as much in local currency terms, according to the research. Brexit Blog: FCA extends temporary powers However, with Boris Johnson's appointment as Prime Minister there is now a greater likelihood of a "disorderly" Brexit, leading to further losses across asset cla...
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