Brexit weakens assets

Emerging market shares retreated from their highest in more than two months yesterday as Britain’s chaotic efforts to leave the European Union weakened demand for riskier assets.

MSCI’s index of emerging-market stocks fell 0,4 percent as Brexit worries overshadowed hopes for progress in US-China trade relations.

Shares in mainland China, Taiwan and South Korea all fell. So did South African, Russian and Polish stocks. On Tuesday evening, British lawmakers voted in principle for Prime Minister Boris Johnson’s Brexit agreement. But then they defeated his attempt to rush the legislation through this week, making it virtually impossible for Britain to leave the EU by next Thursday, as Johnson had promised. The EU is now considering extending the October 31 Brexit deadline, probably until January. — Reuters.

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