removes a 4.5-year-old fear of crashing out of the bloc without trading arrangements in place, but it will take UK financial markets years to lose their Brexit-inflicted scars.
The bare-bones nature of the deal leaves Britain far more detached from the EU than was thought likely in 2016. Further negotiations are inevitable in 2021 to flesh out the agreement.Advertisement "Being excluded from the world's largest single market area will see jobs, people, and capital flows trickle away from the UK, in search of destinations which instead embrace globalisation," Shah added.
And because the size of the UK market has shrunk as a percentage of the global index, to 4 per cent from 10 per cent pre-referendum, foreign investors no longer need to hold as many UK stocks, said Caroline Simmons, CIO, UK, at UBS Global Wealth Management,British equities may perform well against a backdrop where other markets look expensive - Simmons says UK shares trade at a 30 per cent discount relative to global markets against a typical 10 per cent discount.