{"id":159029,"date":"2019-11-04T10:45:03","date_gmt":"2019-11-04T15:45:03","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=159029"},"modified":"2019-11-04T07:17:49","modified_gmt":"2019-11-04T12:17:49","slug":"gb100-analysis-brexit-extension-may-reduce-risks-for-uk-companies","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/11\/gb100-analysis-brexit-extension-may-reduce-risks-for-uk-companies\/","title":{"rendered":"GB100 Analysis: Brexit extension may reduce risks for UK companies"},"content":{"rendered":"
November 4, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Brexit extension may reduce risks for UK companies<\/strong><\/p>\n

The British FTSE 100 index is noticeably behind the S&P 500 due to Brexit risks and looks underestimated. Will the GB100 quotations<\/a> grow?<\/p>\n

Since mid-2016, when a referendum on Britain’s withdrawal from the European Union took place, the FTSE 100 grew by 15%, and the S&P 500 – by 50%. Due to this lag, the dividend yield of the British index is now 4.6% versus 2.4% for the US. The P\/E (total capitalization \/ total profit of companies for the year) of the FTSE 100 is 14.8. This is below the P\/E of the S&P 500, now equal to 21.2. The timing of Britain’s exit from the EU was postponed from October 31, 2019 to January 31, 2020. This can reduce Brexit risks and help align the fundamental performance of the FTSE 100 with other global stock indices. Note that since the beginning of 2019, the S&P 500 has risen by 22%, and the FTSE 100 – by 8.5%.<\/p>\n

\"GB100\"<\/p>\n

On the daily timeframeGB100: D1<\/b> is in a neutral trend around the 200-day moving average line. Various technical analysis indicators have generated signals to increase. Further growth of quotations is possible in case of successful completion of Brexit and positive economic indicators in the UK.<\/p>\n