Following Theresa May’s commons defeat, the Chief Investment Officer of Brooks Macdonald International, Kevin Boscher, commented on the likely reaction from the markets.
“The market’s reaction to Brexit developments will continue to follow the lines of how ‘hard’ (disorderly) or ‘soft’ the secession will be,” he said.
“A harder Brexit is generally associated with greater uncertainty, weaker investment, a cheaper sterling, slower real wage growth and lower consumption, and greater pressure on the UK’s economic growth in everything but the very long term.
“Conversely, under a softer Brexit investors expect less political uncertainty, more investment, sterling appreciation, stronger real wage growth and consumption, and faster overall economic growth. Whilst Brexit is clearly a major consideration for the UK and Europe, markets are also reacting to a changing global economic environment and, in particular, the threat of slowing economic activity, the changing relationship between the US and China and a number of additional political risks.”
Pictured: Kevin Boscher.
