US Open – Brexit is Coming, Trade Progress, Dollar tumbles, Oil rises, Gold’s resilience

Dec 13 11:12 2019 Print This Article

Last night was a historic night for Boris Johnson as his Conservative Party delivered a crushing election victory over Labour.  Johnson’s party tore down the “Red Wall”, just like Viserion the Ice Dragon did at the end of season 7 in Game of Thrones.  A ton of uncertainty has been lifted for the UK economy and investors are rejoicing that Brexit is finally coming. 

Johnson has secured a convincing majority in Parliament that paves the way for him to finally deliver Brexit.  Green across stock market screens could remain the theme for a few more days.  Global risk appetite is turning a corner here as two huge headwinds, Brexit and the US-China phase-one trade deal, are about to become tailwinds.  With a disorderly Brexit off the table, the focus will shift to Brexit transition phase and the lengthy negotiations the UK government will have with all of their major trading partners.  Brexit is nowhere near from over, we just passed the 10-mile marker in this marathon that is Brexit.   

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