Invest
New PM won’t upset UK markets
Boris Johnson’s appointment as Britain’s next prime minister won’t have a huge impact on domestic or international markets, according to a global financial advisory CEO.
New PM won’t upset UK markets
Boris Johnson’s appointment as Britain’s next prime minister won’t have a huge impact on domestic or international markets, according to a global financial advisory CEO.
In predicting the prime ministerial outcome, the chief executive and founder of deVere Group, Nigel Green, said that the change to the leadership means “it can be expected that there will be a knee-jerk reaction for the pound to the downside on the announcement that Boris Johnson has won the keys to Number 10”, but that this outcome has been largely priced into the pound in recent times.
It was announced late yesterday that Mr Johnson had become the leader of the in-power Conservative Party, and would as a result, be sworn in as the nation’s newest prime minister.
“Boris Johnson has been the clear favourite in this leadership race since the beginning,” Mr Green said.
“As such, the markets have been pricing in the immediate impact on sterling of the Johnson administration,” he continued, adding that as any change is expected and priced in, “it will not drop too much further or for too long”.
For investors, a bigger issue facing the pound is the possibility of no-deal Brexit by the 31 October deadline.
This would mean the country would leave the European Union without concluding a withdrawal agreement. Both the UK and the European Union have an exit deal in place but are struggling to get approval through parliament.
Mr Green commented that the Brexit chaos and uncertainty have had an impact on the British pound.
It has also “been driven by fears regarding Mr Johnson’s embrace of the possibility of a no-deal Brexit on 31 October, with many forecasting an economic shock for Britain if this were to occur”, he noted.
“However, there’s also an argument to suggest that Mr Johnson’s controversial ‘do or die’ approach – and a hard break – will at least end the years of failed negotiations which have fuelled endless uncertainty for business and the markets,” the CEO continued.
“A quicker and cleaner exit from the EU could indeed deliver an unexpected boost for the pound as international and domestic investors get the clarity they crave before stepping off the sidelines and investing into the UK.”
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
