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Teresa May's withdrawal agreement, overwhelmingly rejected by Parliament, has so far triggered a mild rise in the pound, attracting buyers to British domestic companies, and is also slightly positive for Ireland's main stock index, ISEQ. The index is a measure of confidence in the British retreat.
Some investors have begun to replenish short positions in British banking and construction stocks, both of which have been hit hardest by the uncertainty of Britain's withdrawal from Europe.
But Money Manager warned investors not to flood into British assets in view of future uncertainties.
"We think investors are rushing into action," said Azad Zangana, an investment strategist at Schroeder and Dean Turner, a British analyst at UBS Global Wealth Management.
"British assets will continue to be affected by political turmoil, which we expect will not ease until a definite outcome emerges," Turner said.
"At a time when things are very uncertain, we do not advocate directional bets on pounds, British bonds or British stocks," he said in a report to clients, adding that "it would be wise for investors to maintain exposure to the UK at a benchmark level."
Turner warned as early as November that although everyone could have their own views on the political situation in Britain and the possible development of the withdrawal from Europe, no one could claim operational advantages in these events, given the very chaotic nature of politics.
Philippe Waechter, chief analyst at Ostrum Asset Management in France, also believes it is necessary to keep a low profile.
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