Equities rally, but few convinced

Prepare for the worst…

There was an early strong bounce back in Tuesday’s session following the big losses previously, but it’s clear that any real zest emerging from it is looking short-lived. Just too much water has passed under the bridge recently and there still remains a massive amount of uncertainty emanating from several quarters. Furthermore, it’s December, with ‘no’ substantial business likely to get done once we have seen off this week.

Brexit continues to dominate and the odds are that May will come back from Brussels, even at this late desperate hour, with as much as what former PM Cameron did before her: Nothing. We believe that ‘No deal’ odds will have increased dramatically. The current uncertainty, therefore, will dog British and EU politics over the Christmas period and well into 2019. For the market, it should be preparing for the worst.

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