Brexit - Still bordering on the ridiculous

The Brexit issue takes center stage at an EU summit on 17 - 18 October, with the two sides no closer to “squaring the circle” before the UK leaves the EU on 29 March 2019. It means investors face more uncertainty, with a real risk that sterling and European stocks will remain subdued, Cornelissen says.

“They are still kicking the can down the road, but hopefully the time pressure will lead to a compromise in December,” he says. “We still believe that the pound has upwards potential if it comes to an agreement, but in the meantime there will be continued volatility.”