Rathbones' Chillingworth: UK market precarious as Brexit looms

The outlook for the UK economy and equity markets is difficult to fathom. There are plenty of rays of sunshine, but also some ominous-looking clouds, writes Rathbones' Julian Chillingworth.

The UK economy is not roaring ahead as it once was, but it is still growing and retail sales rose by a sizeable 5.2% in January. Services PMIs remain comfortably in growth territory, and employment is expanding as well. Brexit is an obvious issue on the horizon, however. While we are dubious of any large effects on British businesses a UK exit might have in the short to medium term, there could be plenty of share price volatility along the way. Fears are being transmitted through the currency - sterling has fallen 3.1% against the dollar since London Mayor Boris Johnson threw his lot ...