How a Brexit Deal Would Swing U.K. Stocks in Four Charts
- Stronger pound could boost mid-caps at expense of large-caps
- Investors still need to see if deal can get past parliament
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Brexit talks, the source of seemingly endless drama, finally offered the prospect of some clarity this week -- but investors may want to hold their horses.
The EU’s chief negotiator Michel Barnier said Monday it’s “realistic” to expect a deal on the U.K.’s future relations with the bloc within eight weeks, while the two sides were Wednesday said to be preparing for a special summit in November. That could reduce a major overhang for equities since the 2016 vote: possibly buoying U.K. mid-caps and reversing some of the chronic fund outflows from both Britain and Europe.