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IG Group

'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.

Quick facts: IG Group

Price: £6.43

Market: LSE
Market Cap: £2.37 billion
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