Main risks of Brexit for global markets
Next week will come to the history for sure. And while the British have only to do a simple thing – vote whether they want to leave EU or stay, their decision change the current situation at the every global stock market.
The Brexit already has it complete influence on the markets. And the analysts predict the there will be huge consequences for investors if Britain will separate from the EU.
Of course, uncertainty may kill market debt and equities not just at the British stock market, but everywhere.
Traders, bond, currency, equity and commodity investors are trying to protect themselves.
What can we expect?
– Export will fall down. All well-known and unknown exporters in Britain will suffer from the Brexit. The costs that they will have to pay for trading with EU will increase for sure. The unstable currency position does not match well with the Brexit and export as well.
– Investors will take away their money. Will London still be able to save the title of the world financial center? After it will lose this reputation, investors from the EU will prefer to stay there, with the original currency and safer policy. It is already a pretty hard situation about the dominance at the assets trading. It is a very possible that after leaving the Eurozone, EU government will limit the access to their cash for Britain.
– Huge rates pressure. British Bank wants to attract new capital from across the world. And the pound is very weak right now. With the weak euro, as well, investors will not be able to handle the support of British rates.
– Chain reaction. Britain can call the chain reaction inside the EU, just leaving it, and showing the way for other countries that do not agree with the European common policy somehow.