Wizard wrote:The question then becomes how UK shares will respond. My guess is it is not fully priced in yet and whatever their exposure to the UK itself there will be a further general hit to all UK listed companies if we do end up with no transition period agreement. Another good reason not to put all of ones investment eggs into the UK basket.
Actual UK/EU trade is relatively small, wont affect the majority of UK companies at all, some will significantly benefit. In some months the largest value export item from the UK into the EU was ... gold.
Potentially the higher the barriers on EU access to the UK's internal market the better. As that could lead to more rapid repatriation of UK assets/jobs back into the UK, such as rail, utilities ..etc. The UK not subsidising EU competitors is positive move. In the EU corridors (not in the Euro) had the UK at a distinct disadvantage. A EU controlled puppet bound by its rules, but disadvantaged within the group.