This week, with Brexit dominating the news, IG Markets' Evan Lucas says there are stocks exposed to the UK that may experience short-term pain.
“Clydesdale (CYB) is facing the uncertainly that all EU banks now face: liquidity questions, ability to access the single market and if savings head into safe haven asset rather than being used in the general economy, bank profits face uncertain times. SocGen, Barclays, RBS, Lloyds and Deutsche bank were smashed on Friday losing as much as 35%. Clearly CYB will be swept up in the short-term turmoil as economic treaties begin to be renegotiated and the future of EU/UK banking is debated.”
Lucas argues Henderson Group is another stock that could experience short-term Brexit pain.