Brexitproof your portfolio with eToro’s five stock picks for Q4

eToro’s Q4 report identifies Brexit “defensive” stocks – a set of stocks that due to their nature defend your investments in uncertain times.

Can the UK and the EU negotiate a revised Brexit deal before 31 October 2019 or will there be an extension to 31 January 2020?

Earlier this month, Parliament passed a law that aims to block the UK leaving the EU without a deal on 31 October, though this does not completely rule out a no-deal Brexit in the future.

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In an interview back in September, European Commission President, Jean-Claude Juncker, said he was confident a deal could be reached by 31 October, which caused the pound to jump to a two-month high. And last week, the pound extended its gain after the UK’s Supreme Court ruled that Boris Johnson’s decision to suspend Parliament was unlawful. The boost to the sterling resulted in a dip for the FTSE 100 blue-chip stocks, many of whom generate a significant proportion of their revenue in foreign currency.

On a positive note for world stocks and the global economy, Treasury Secretary Steven Mnuchin said US-China trade negotiations would resume in October when China’s Vice Premier Lui He visits Washington.

Staying across the pond, the Federal Reserve delivered a 25 basis point rate cut at their September meeting. This was perhaps less than the 50 point cut many were hoping for, including President Trump himself. However, this does indicate the Fed is willing to take action and have not ruled out further cuts.

Finally, drone strikes in Saudi Arabia in September triggered a 20% surge in price and continues to affect the global oil supply. Could mounting tensions in the Gulf result in a further increase in the price of oil?

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