This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
The FTSE 100 is noticeably outperforming the FTSE 250 given that it is dominated by globally diversified firms many of whom see over 80% of their revenue generated from non-UK sources, and thus the dramatic selloff in the pound is actually a net positive in terms of the FX conversion of their overseas earnings. But in US dollar terms the FTSE 100 is still down 8.7% from its high on Thursday, which is how most global asset managers would be looking at it. So it would be premature to say that Brexit concerns have totally dissipated from markets, and certainly listening to the hardened language from EU representatives overnight it is hard to envision how the UK stays in the single market.