The comparatively poor performance of the FTSE 100 since 10th October is a reaction to the rebound in sterling since Boris Johnson agreed a new Brexit deal with other EU leaders rather than a reflection of scepticism about its passage through the UK’s parliament. If the deal does pass this week – which remains far from certain – the benchmark equity index will probably continue to struggle as sterling gains more ground. But in this case, small-cap and domestically-focussed equities in the UK may thrive, as they have done already this past week.
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