Investors have put money into UK equities for the first time in almost three months for the week ending Wednesday, as tumult in Westminster reduced the likelihood of a no-deal Brexit.
Mutual funds and exchange traded funds that invest in UK stocks attracted $197.5m over the seven-day stretch, the first positive sum since mid-June and the largest inflows since early May, according to EPFR Global data.
The inflows come amid a fractious week in UK politics with Prime Minister Boris Johnson suffering a bruising double defeat when a group of Tory MPs sided with opposition parties to support extending the Brexit deadline and Mr Johnson’s efforts to call an election failed.
“The greatest fear of investors was a no-deal Brexit and the events this week seem to have reduced that possibility — that is what has driven these inflows,” said Kristina Hooper, global chief investment strategist for Invesco. “There is an awful lot of political chaos, but the primary impact is being felt in UK equities and the pound.” [...]
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