Diario actualizado de economía y finanzas - International Journal of Economics & Finance    27 de septiembre de 2020

EMF in English


Brexit anguish is at the forefront again

  • By Mobeen Tahir, Associate Director, Research, WisdomTree

The ‘B’ word is back. It was not making headlines for most of this year because both parties involved the UK and Europe were embroiled in a more urgent crisis in the shape of a pandemic. The two sides are still making heated exchanges over Brexit negotiations while the 31st December 2020 deadline for agreeing the terms of their future relationship approaches quickly. Bad for Europe but worse for the UK, UK’s equity market has trailed Europe’s considerably this year. The UK’s FTSE 100 Index is down over 20% while Euro Stoxx 600 Index is down just over 11% year-to-date in sterling and euros respectively. If we compare the two in Euros, the UK fares even worse on account of Sterling’s weakness relative to the Euro another sign of the UK being hurt more by the risk of Brexit disruption and uncertainty.