Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Brexit, US stimulus and the roll-out of vaccines are dominating investors’ thoughts
Thursday 10 Dec 2020 Author: Tom Sieber

There is plenty for investors to think about as we approach the end of a tumultuous year. For UK stocks the most significant remains Brexit and the prospects for a deal.

As we write talks were going to the wire. However, an important point to remember is that even if a deal is secured it will be quite a limited one and it will still mean extra checks and regulation on goods flowing from the EU to the UK and vice-versa. This raises the prospect of disruption when the transition period ends in January.

Whether this might have an impact on the roll-out of vaccines – key to a reopening of the economy – could become a more pressing story with 90-year-old Margaret Keenan in Coventry becoming the first person in the world to receive the Pfizer vaccine.

The other big politics meets economics story is the bi-partisan stimulus package in the US with suggestions an agreement could come soon. This would likely provide stocks with a further catalyst although some kind of support has arguably already been priced in by the market as US equities soared to new record highs as a weak jobs report (4 Dec) was seen as increasing the pressure to get a stimulus deal signed off.

‹ Previous2020-12-10Next ›