Global markets largely shrugged off Prime Minister Theresa May’s historic loss last week, with Parliament voting 432 to 202 in opposition of her Brexit plan. U.S. stock indexes opened slightly higher the day after that vote but were moving with greater tenacity in response to U.S.-China trade talks.
U.S. companies in the S&P 500 that have significant revenue from the U.K. are raising concerns among investors because of the Brexit uncertainty.
“The impact of Brexit on aggregate US equity earnings will likely be limited, irrespective of the outcome,” Goldman Sachs analysts said in a note to investors. “However, Brexit uncertainty remains a concern for stocks with the highest U.K. exposure.”
S&P 500 companies with the highest sales exposure to the U.K. include eBay, PayPal and News Corp., according to Goldman. It said those companies had a greater than 11 percent exposure. Among the top 20 companies Goldman cited, Newmont Mining had the biggest exposure — 75 percent.
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