Worries about the consequences of Brexit have prompted many fund buyers to increase their allocation to cash and hedge their long positions. However, some put some risk back on at the end of last week as polls swinged back towards ‘Remain’.
European fund buyers believe Britain will vote to remain in the European Union on Thursday. Investors from the Nordic countries are especially convinced the status quo will prevail.
With the Brexit referendum now less than a week away, it’s time to ask the question whether the risks associated with a Leave vote are now more or less priced in or whether it does still pay to hedge your exposure to European equities and sterling.
Betting odds have emerged as a coveted predictor of the outcome of the UK’s EU referendum. But are they actually as reliable as some fund managers suggest? Nikko AM has its doubts.
While investors reach for their hard hats ahead of the EU referendum, they should also prepare for potential bargains – whichever way the vote goes – on 24 June.
Markets have been trading more or less sideways for a while now, but fund managers and fund buyers alike are preparing for the next downturn. And Brexit could be the trigger.
UK equities are the most vulnerable asset class in the immediate aftermath of a Brexit, a stress test conducted by the risk modelling provider Axioma showed.
Financial markets have lacked direction in recent months, with the main equity indices all very close to where they were at the start of the year. Macroeconomic data are not strong enough to reinvigorate the bull market, yet not sufficiently weak to stoke fears of recession.
Iceland’s investor community has withdrawn its support for EU membership, a poll conducted in Reykjavik at the Expert Investor Iceland Forum suggests. Icelanders now consider themselves more eurosceptic than Brits.
The Leave campaign is somehow gaining momentum, making the outcome of the upcoming Brexit referendum increasingly uncertain. This uncertainty will have far-reaching market implications in the short term, as a Leave vote would likely shock global markets, Blackrock warned today.
Four in 10 financial advisers in the UK will vote for Britain to remain in the European Union, a poll from the Association of Professional Financial Advisers (Apfa) shows.
Sterling is down almost 10% against the euro in the past six months. Many people automatically assume this is because of fears over Brexit. However, there are probably other factors at play too.
