UK stock markets took a beating together with GBP this morning. The move was led by the banking shares, with the likes of RBS, Barclays and Lloyds showing hefty declines with some of them trading more than 30% in the red. The cyclical banking shares are the first to react in major turning points. If uncertainty increases the banks are the first to suffer but moves that take over 30% off the share prices seem exaggerated even though there is an adjustment period ahead.
One of the open questions is now what happens with the pro-EU Scotland. Now that the UK decided to leave the EU the Scottish independence is back on the table as all 32 local authority areas voted in favour of Remain with 62% of the vote versus 38% for Leave. Scotland’s First Minister Sturgeon said that the EU vote “makes clear that the people of Scotland see their future as part of the European Union.” There will also be voices in Northern Ireland and Wales for the euro option, particularly in the case of the former should Brexit lead to the installation of a full border between the north and south.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Chief Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information presented here.