Perhaps surprisingly, the shares of medium- and large-sized companies fared better in the UK than in the US, the euro-zone and Japan, in the aftermath of the vote for Brexit. Much of this outperformance was fuelled by the weakness of sterling, which improved the outlook for UK exports and increased the value in sterling of the earnings of UK multinationals’ foreign subsidiaries. This more than trumped a post-referendum fall in the share prices of firms that generate less revenue from abroad, such as those in the consumer discretionary and financial sectors.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services