Arab Today, arab today to fend off brexit risks
Last Updated : GMT 15:15:11
Arab Today, arab today
Arab Today, arab today

Investors scramble

To fend off Brexit risks

Arab Today, arab today

Arab Today, arab today To fend off Brexit risks

Many people were taken by surprise when a clutch of polls
Paris - Arab Today

A surge in support for Brexit has sent investors racing for financial shelter a week ahead of a referendum that could redraw the political map of Europe.

Many people were taken by surprise when a clutch of polls this month showed support for a British pullout taking the lead in the runup to the tightly fought June 23 vote, analysts said.

The polls triggered a rush to offset the risks of a possible British breakaway from the European Union, they said, with incalculable consequences for a project born out of a determination to forge lasting peace on the continent after two world wars.

Germany's Foreign Minister Frank-Walter Steinmeier on Wednesday even raised the prospect of a Brexit vote eventually leading to the "disintegration" of the bloc, ending a decades-long effort to forge closer relations across Europe.

With no historic precedent, investors found it difficult to assess the risks, said Pascale Seivy, head of investment advisory services at Pictet in Paris, France.

Investors are trying to position themselves to profit in case Britons vote to remain in the EU while at the same time buying "massively" in instruments that will protect them against market declines in case Brexit prevails, Seivy said.

Some speculative funds have ordered their own exit polls on the day of the referendum so as to react before the official results.

- 'Inconceivable' -

"Just a few weeks ago, an exit was inconceivable for many investors," said Renaud Murail, manager at Barclays Bourse brokerage.

But after the latest British opinion polls, European stock markets had declined by seven-to-eight percent on average, Murail said.

"The economic stakes that should be at the centre of the debate in the United Kingdom have been swept away by purely emotional thinking," he said.

Investors had been relaxed about the impending referendum until this month when polls began to show significant gains for the Brexit camp, said Maxime Alimi, economist at AXA Investment Managers.

"The readjustment has been fairly drastic," he said.

On Tuesday, investors for the first time ever accepted negative returns for the privilege of holding Germany's rock-solid benchmark 10-year government bonds, one of the safest investments.

The British pound swooned meanwhile as bookmakers put the chances of Britain leaving the EU at about 42 percent, a sharp rise from just a few weeks earlier.

"It is a classic phenomenon that involves avoiding any risky position," said Franck Dixmier, global director of bond management at Allianz GI.

- 'Harm has been done' -

In any case, Britain's decision to hold a vote on EU membership had in itself had broken a taboo, Dixmier warned. "The harm has been done."

Polls ahead of the British referendum have now become masters of market sentiment, said Greg Jones, managing director at Henderson Global Investors.

"As we come closer to the referendum vote, market reaction really depends on where the polls go with volatility likely rising on any prospect of a leave outcome," he said.

Markets are likely to be volatile throughout 2016, he said, as concern over a Chinese economic slowdown are overtaken by Brexit concerns and later the uncertainty prompted by US presidential elections.

Investors are avoiding risk across Europe, he said.

"People are also expecting a rally if the outcome to the referendum is to remain within the European Union," Jones said.

"I personally do not see that."

Rather, a British vote to remain the European Union is likely to mirror the reaction to the Conservative Party's election victory in Britain last year, he predicted.

"The effect of the general election outcome was that markets rose for half a day and then settled again. There was far less 'feel good' factor from the result than anticipated. Instead, there was the realisation there are a number of issues affecting markets at global level."

Source: AFP

arabstoday
arabstoday

GMT 09:30 2016 Wednesday ,23 November

World economy needs Trump

GMT 10:15 2016 Tuesday ,08 November

Oil industry needs to invest

GMT 11:08 2016 Monday ,24 October

Paris, the upstart startup capital

GMT 09:11 2016 Tuesday ,30 August

France seeks halt to talks

GMT 10:43 2016 Friday ,29 July

After earnings deluge, Fed meeting
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today to fend off brexit risks Arab Today, arab today to fend off brexit risks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today to fend off brexit risks Arab Today, arab today to fend off brexit risks

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan: experts

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan: experts
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday