Investors shocked by referendum result

  June 2016 is set to go down in history as one of the more eventful months in recent memory. In the much-discussed referendum over the UK’s future within the EU, a narrow majority of Britons voted by 52% to 48% in favour of quitting Europe. Financial markets were rocked by the news: share prices … Continue reading “Investors shocked by referendum result”

Brexit: keep calm and carry on seizing business opportunities

Despite last week’s referendum result it’s important to remember nothing has actually changed for now‎.  The UK is still a member of the EU, it is still the world’s fifth largest economy and is still home to a huge range of fantastic companies. Our relationship with Europe will evolve over time but I have no … Continue reading “Brexit: keep calm and carry on seizing business opportunities”

The Brexit trade-off

Amidst the uncertainty around what will happen after Britain’s historic vote to leave the European Union, there is some clarity about the next steps. Boris Johnson, the prominent Leave campaigner and PM contender, has set out his views in a newspaper article in which he says that Britons will have the right to live and … Continue reading “The Brexit trade-off”

Brexit – a shock for markets, or a crisis?

Investors have been seriously wrong-footed by the result of the EU referendum. But the shock of City traders this morning is nothing compared with the stunned response of the people who thought they ran the country. The economic and political questions raised by this vote will not be answered for years, possibly decades. But the … Continue reading “Brexit – a shock for markets, or a crisis?”

Stagflation looms after UK’s EU referendum

The UK choosing to leave the EU comes as a major shock for investors and uncertainty will remain high for some time. In the near-term, the UK is likely to experience a stagflationary period of lower growth but higher inflation. After months of uncertainty and market volatility, the UK is projected to have voted to … Continue reading “Stagflation looms after UK’s EU referendum”

Risk-off sentiment prevails as the market reaction quickly prices in uncertainty

The UK’s vote to leave the EU has resulted in a significant pullback in markets but investors should not over react to today’s volatility. Non-domestically focused equities may prove the best way to navigate the market uncertainty. There are so many issues and permutations to be considered in the event of today’s Brexit vote, it’s … Continue reading “Risk-off sentiment prevails as the market reaction quickly prices in uncertainty”

EU referendum: our thoughts as the UK decides to leave

Following the UK’s historic decision to leave the European Union (EU), we share some initial views from our economic and investment teams as to what this result may now mean for markets and investment strategy.   Nick Mustoe,Chief Investment Officer, Invesco Perpetual After months of anticipation, UK voters have decided – in an historic move … Continue reading “EU referendum: our thoughts as the UK decides to leave”

UK VOTE: OUT OF EUROPE

The UK’s momentous decision to leave the EU brings long-lasting political and economic consequences. We expect European leaders to focus on fending off domestic populist movements emboldened by the British exit and on preventing the entire EU edifice from falling apart. This points to a tough negotiating stance toward the UK and less focus on … Continue reading “UK VOTE: OUT OF EUROPE”

A lacklustre month – Is political uncertainty to blame?

May was a lacklustre month for equity markets with the FTSE World index rising by just 0.87%. Buoyed by some positive economic figures, the US stock market was the best performing asset class (up 3.7%) followed interestingly by UK gilts which rose by 2.4%, perhaps seen as a safe haven investment in the run up … Continue reading “A lacklustre month – Is political uncertainty to blame?”

Disappointing economic data in China

Emerging equity markets generally performed less well than their developed counterparts during May. In particular, performance was pulled down by a steep decline in share prices in Brazil, as the country’s Senate voted to impeach President Dilma Rousseff. The Bovespa Index fell by 10.1% over May as a whole; nevertheless, over the year to date, … Continue reading “Disappointing economic data in China”

Economic growth gathers pace in the eurozone

During May, Greece finally managed to thrash out a deal with its international creditors that would release a further tranche of bailout cash to allow Greece to meet its upcoming debt repayment obligations. Following the confirmation of the deal, an International Monetary Fund (IMF) spokesperson commented, “Our European partners and all the other stakeholders all … Continue reading “Economic growth gathers pace in the eurozone”

Will US rates rise in June?

The prospect of higher interest rates absorbed a sizeable proportion of investors’ attention in the US during May. The minutes from the Federal Open Market Committee’s (FOMC’s) April meeting fuelled speculation that policymakers might move to tighten interest rates as early as June, as long as economic data – domestic and external – remain supportive. … Continue reading “Will US rates rise in June?”

Prospect of higher US rates drives down Treasury bond yield

As the referendum over the UK’s future membership of the European Union (EU) drew closer, credit ratings agency Fitch warned that, if the UK were to leave the EU, a Brexit would “weigh on the economies of other EU countries and increase political risks”. In particular, a Brexit would cut the UK’s contribution to the … Continue reading “Prospect of higher US rates drives down Treasury bond yield”

Weak sterling undermined UK dividends in Q1

Speculation over the EU referendum continued to absorb the limelight during May, and investors and companies became increasingly nervous about the potential impact of a Brexit. The FTSE 100 Index fell by 0.2%, while the FTSE Small Cap Index climbed by 0.2%; meanwhile, the FTSE 250 Index posted a monthly gain of 2.3%. The relatively … Continue reading “Weak sterling undermined UK dividends in Q1”