25th July 2016
-IAM, Asset management
Marc-Christian Bollet, Head of Client Relationship Management
The decision by the British to leave the European Union created as of June 24th a shockwave on the stock markets, which experience heavy losses. 3 weeks after this vote, some markets like the US (S&P500), Japan (Nikkei) or the Emerging Markets are at higher levels than prior to the vote. The UK market (FTSE100) progressed by 5%, thanks to the weakness of the pound, while European markets are close to the level from before June 24th.
The Brexit brings uncertainties but investors soon understood that the level of losses was exaggerated. A slowdown in the British economic growth is expected, but its impact on the worldwide growth will be limited. Looking at politics Mrs Theresa May has formed her government; remains to be seen with which speed the exit of Britain from the EU will be negotiated. Uncertainties remain but financial aspects will come frontstage again with the quarterly results publications of companies, which will allow us to get a more precise picture of the companies earning evolutions.