1. Hello Guest Click here to check FX Binary Point Financial Directory

Get ready for more market reaction to Brexit

Discussion in 'Market News' started by Lily, Jun 26, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Sterling and the stock market are only likely to settle once the UK’s new relationship with Europe has taken shape

    A lame-duck prime minister; a (so far) silent chancellor; an opposition party in turmoil; a possible general election in the autumn that could produce a hung parliament; and the threat of a second referendum in Scotland. Do not be surprised if financial markets take a second look at Brexit and decide that Friday’s initial response was too tame.

    The $2tn (£1.5tn) of stock market value removed around the world is a large figure, of course. But the reaction wasn’t as dramatic as some had feared – the FTSE 100 index ended the week higher than it started, for example. Investors may think again. They already knew that the old image of the UK political landscape – basically stable and predictable, at least by comparison with most of Europe – had suffered a jolt. But they may not have been prepared for the size of the earthquake. Expect aftershocks.

    Continue reading...

Share This Page