Skip to main content

The markets got it wrong again - time to bet on uncertainty?

Shutterstock 624878165 l1

The financial markets thought they were going to get a strong and stable result (at least until late yesterday), what they didn’t want was uncertainty, but the British electorate has given them confusion. So whilst the markets have probably got it wrong again, with strong support for the pound (predicting a Tory victory), the reaction is now mixed.

The currency markets are down, and this has impacted on the rise of the FTSE 100, but so far the markets are steady awaiting news from the current prime minister - we have seen nothing like the reaction after the shock of Brexit. Despite media hype and also Labour ambition, it seems only a Conservative government is realistic either in a minority or with the DUP. The biggest threat now to the markets is the Brexit negotiations and the UK negotiating hand is significantly weakened but on a positive it looks likely only a soft Brexit would be palatable - unless of course we have another election in October...

By Professor Adrian Bell

Time to bet on uncertainty

The only thing certain is that we are living uncertain times. The markets don’t seem too surprised on the election results, but until a clearer picture emerges on the political front regarding government and the (possible change in the) persona of the prime minister, volatility in most financial markets will prevail. Time to bet on it? It is hard to predict directional changes; but whatever the chaos, a crash is not guaranteed.

By Dr Emese Lazar

Published 9 June 2017

You might also like

Henley climbs the league table for Accounting and Finance in Complete University Guide 2017

27 April 2016
The Complete University Guide 2017 has announced that Accounting and Finance at Henley Business School has moved up to 14 overall in the UK out of over 100 institutions.
Rankings news

BBC South today broadcast live from the ICMA Centre

6 December 2013
Professor Adrian Bell, Head of the ICMA Centre, was interviewed by BBC South on Thursday 05 December 2013. The BBC broadcasted live from one of the ICMA Centre's dealing rooms which was filled with students engaging in a trading simulation. The interview was reflecting on the Chancellor’s Autumn Statement.

ICMA Centre researchers requested to present to Chinese delegation

18 October 2013
Following a request from the British consulate in Shanghai, Dr. Andreas Hoepner, Associate Professor of ICMA centre, Henley Business School, made a presentation of “Sustainability Investment” to Chinese regulators and business leaders at the Association of British Insurers, 8th Oct 2013.
Business News