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Benedicte Gravrand, Opalesque Geneva: The UK election results are bound to create volatility and thus greater investment opportunity, according to commentators.
UK Prime Minister Theresa May's Conservative party, while remaining the largest, did not secure an overall majority in yesterday's election. This means that rather than securing a bigger mandate as she assumed she would - hence why she called the early election - she will now face questions about her leadership, which will engender uncertainty just as the country is beginning the negotiations for its exit from the European Union. The PM's gamble has backfired hugely, commentators say.
Nigel Green, the founder and CEO of deVere Group, a large independent financial services organisation with more than $10bn under advice, expects chaos, a falling currency, an increase in government bond prices, pressure on equity and high volatility.
"We're entering into a perfect storm of chaos and the uncertainty is set to unleash mayhem across global financial markets, at least in the short term, as they react to the growing question marks hanging over the British parliamentary landscape," he commented.
"We can expect the pound to fall considerably, gilt prices to rise and UK-orientated stocks to come under further pressure as the UK tries to get a handle on what is happening before it officially starts the Brexit negotiations."...................... To view our full article Click here
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