Commenting on yesterday’s defeat of the government’s revised Brexit deal

Commenting on yesterday’s defeat of the government’s revised Brexit deal, Rupert Thompson, Head of Research at Kingswood, said: “Yesterday’s defeat of the government’s revised Brexit bill left markets little moved with the pound back right in the middle of the already quite tight $1.30-1.33 trading range of the last few weeks. The defeat was not after all unexpected and more importantly the markets remain as bemused as everyone else as to where we are headed – a No-deal, a short or long extension to Brexit, a referendum, May’s resignation or a general election are all to vary degrees still all quite possible. With all these options still on the table, sterling seems almost paralysed by the uncertainties. At Kingswood, we have deliberately hedged our bets: we have a sizeable exposure to overseas equites which would benefit a fall in the pound on a No-Deal whilst retaining a tilt to mid-cap within our UK equity exposure which would benefit from any kind of deal.”