InvestNow News – 2nd Dec 19 – ANZ Investments – The Month Ahead
As 2019 draws to a close, equity market gains are showing little signs of slowing with the three major indices in the US making fresh record highs in November. It’s a similar story in Europe with the DAX at its highest level since early 2018 and in France, the CAC 40 made a new multi-year high.
Despite the holiday season nearing, there’s plenty on the cards in December, and here’s what ANZ is eyeing as the year comes to a close.
The Brexit saga will continue into year-end when on 12 December the UK holds a general election, its third since 2015.
Conservative Party leader Boris Johnson risks becoming the shortest-serving UK prime minister, a risk he is willing to take as he pushes for a majority in Parliament to get his Brexit deal passed. Should the Conservative Party win an outright majority – a distinct possibility given current polling – Johnson could push through his Brexit deal smoothly and before the new 31 January deadline.
However, a strong showing by Jeremy Corbyn and Labour could extend the stalemate in UK Parliament, heightening uncertainty, which is likely to bring with it more volatility for UK investors. And should Labour win a majority – unlikely given current polling – a complete new deal would be tabled in Parliament with the possibility of a referendum on the deal.