The UK election results are out, proclaiming Boris Johnson’s conservative party as the victor. This victory indicates a strong pro-Brexit sentiment amongst voters. But Britain’s divorce from the EU is riddled with complexities. For instance, Scotland may seek an independence referendum again. Theresa May’s efforts earlier this year are a testament to the fact that reaching consensus on a Brexit deal is no easy task. The EU is not going to make this any easier since it’s already grappling with negative interest rates and an economic slowdown. The uncertainty that Brexit brings to financial markets will show up in the coming months.

The US has a clear political stance on the Hong Kong issue. How much this will impact trade negotiations remains to be seen. The US and China are yet to negotiate a concrete deal and the earlier done the better for both. The narrative indicates progress in rolling back tariffs, but it’s not over until the deal is done.

The India story may look bleak now because the RBI didn’t cut rates earlier this month, November inflation print stood at 5.54%, and growth is still a burning priority for the government. The gradual shift from government spending to foreign investments is becoming apparent. Markets have much ‘waiting and watching’ to do. Investors should be dynamic in their strategies.

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