Brexit Briefing: London Stocks during Risk From UK-EU Trade Talks

FTSE 100, FTSE 250, Brexit news and analysis:

  • With Brexit only over dual weeks away, traders in London bonds are starting to worry about a negotiations on trade that will start between a EU and a UK after Jan 31.
  • Any signs of feud would expected put downward vigour on UK equities.

FTSE 100, FTSE 250 could loiter when tough UK-EU trade talks begin

Traders in London-listed bonds need to be clever after Brexit on Jan 31 as potentially formidable trade talks between a UK and a EU start in earnest. UK Prime Minister Boris Johnson has pronounced a supposed transition duration will not be extended over a year-end, withdrawal open a probability of a no-deal Brexit on Dec 31.

Any suggestions, therefore, that a negotiations are in problem would expected boost a chances of a downturn in UK equities, that have traded broadly laterally so distant this year.

FTSE 100 Price Chart, Two-Hour Timeframe (December 27, 2019 – Jan 15, 2020)

Latest FTSE 100 cost chart.

Chart by IG (You can click on it for a incomparable image)

Equities Forecast
Equities Forecast

Any signs of feud in a trade talks between a UK and other countries, particularly a US, could also moderate view towards London stocks. However, note that a FTSE 100 index of heading London-listed bonds is stoical of many companies – such as banks and miners – that work internationally. There could therefore be a incomparable impact on a broader FTSE 250 index of medium-sized companies, that is some-more UK-oriented.

FTSE 250 Price Chart, Two-Hour Timeframe (December 27, 2019 – Jan 15, 2020)

Latest FTSE 250 cost chart

Chart by IG (You can click on it for a incomparable image)

As a draft above shows, a FTSE 250 has already been lagging behind a FTSE 100 so distant this year and it would expected be strike tough if there were hints that a trade talks are not going well, with many experts warning that a year is a really brief timeframe to determine a deal. These negotiations mostly take several years to interpretation and afterwards need to be put into law.

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— Written by Martin Essex, Analyst and Editor

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