Proactive Investors - Run By Investors For Investors

'Brexit now looks like being far less disruptive after election result'

"The pound has dropped, not surprisingly, and what we have in effect is the ‘Brexit effect in miniature’".
Picture of UK and Euro flags
‘Brexit effect in miniature’

The FTSE 100 index rose sharply on news that the Conservative party had lost its majority in the shock election result, but this market reaction is not a surprise, IG’s (LON:IGG) senior market analyst Chris Beauchamp told Proactive.

"The pound has dropped, not surprisingly, and what we have in effect is the ‘Brexit effect in miniature’".

WATCH: Election result means Brexit now looks like being far less disruptive says IG’s Chris Beauchamp

Brexit is now likely to be far less disruptive to UK and European economies, he adds, with Theresa May having to adopt a far more conciliatory stance.

Beauchamp also expects the more UK-focused FTSE250 to continue to do better than its larger neighbour.

"Mid-caps have done really well and this is no reason why this will not continue.

"Buy on the dips has been a great strategy for FTSE 250 and  should be again if there is any weakness in the mid-cap index", Beauchamp says.

View full IGG profile View Profile

IG Group Timeline

Related Articles

October 30 2018
Braveheart is in the process of transferring all fund management activities to Viking Fund Managers and then closing down Strathtay Ventures, which will help reduce group operating costs
Increasing stacks of coins
September 12 2018
The fund provides wholesale investors with an opportunity to achieve investment returns via term-based investment options.
December 30 2018
The mineral resources investor thinks the macroeconomic environment is favourable to the mining sector. It has four investments that over the next 18 months or so could see it repeat the success it had with its investment in the Prognoz silver project in Russia.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use