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The Impact Of Brexit On Markets Is Over

Published 18/01/2019, 18:35

Opinion

The biggest government defeat in UK political history hasn't affect markets this week. Although uncertainty is always bad for markets, FTSE and other EU stock markets had already moved upwards on news that Article 50 of the Lisbon Treaty will have to be extended.

In addition, the British Pound rose against the US Dollar on January 16 after UK Prime Minister Theresa May had survived a vote of no confidence.

Nevertheless, markets have been preparing for a no-deal Brexit for months, and most MPs have been calling for customs arrangement with the EU, and access to the single market. In the event of a no deal Brexit, a crucial point is the legal protection of consumers' rights and environment: on the one hand, British companies would fall behind the European standards. On the other hand, American investments in the UK would increase.

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