The result of the referendum in the UK caught investors by surprise and the market reaction will be wavy. This was stated by the strategist and head of research of the Swiss investment Bank Julius Baer Christian Gattiker (Christian Gattiker), reports on Friday, June 24, Rambler News Service.
The first wave has already begun, it is expressed in active hedging (insurance against possible future losses — approx. “Of the tape.<url>”), especially in the sphere of currency transactions, says Gattiker. “It will take place mainly on Friday and will probably keep some of the trading days, the next week,” he said.
The second wave will be associated with a chain reaction and attempt to find the answer to the question will be whether a British exit from the EU end. “Watch it will be on the changes in yield spreads (the difference in yield between various issues of securities — approx. “Of the tape.<url>”) bonds of peripheral European countries in the coming days. If they will rise, the market is preparing for the collapse of the European Union”, — believes the chief strategist at Julius Baer.
“The third wave will reflect a reaction beyond the initial comments of European politicians and mitigating interventions of Central banks. It will last weeks, if not months,” — said Gattiker.
On Friday, June 24, European stocks tumbled on the news of the victory of supporters of a British exit from the European Union.
23 June in the United Kingdom held a referendum on the question of further stay in the EU. Supporters of Brexit won with 51.9% of votes. Still in the preliminary announcement of the plebiscite, the pound against the dollar fell by 10 per cent to the level of 1985.
