Skip to main content

The markets got it wrong again - time to bet on uncertainty?

The markets got it wrong, again

Shutterstock 624878165 l1

The financial markets thought they were going to get a strong and stable result (at least until late yesterday), what they didn’t want was uncertainty, but the British electorate has given them confusion. So whilst the markets have probably got it wrong again, with strong support for the pound (predicting a Tory victory), the reaction is now mixed.

The currency markets are down, and this has impacted on the rise of the FTSE 100, but so far the markets are steady awaiting news from the current prime minister - we have seen nothing like the reaction after the shock of Brexit. Despite media hype and also Labour ambition, it seems only a Conservative government is realistic either in a minority or with the DUP. The biggest threat now to the markets is the Brexit negotiations and the UK negotiating hand is significantly weakened but on a positive it looks likely only a soft Brexit would be palatable - unless of course we have another election in October...

By Professor Adrian Bell

Time to bet on uncertainty

The only thing certain is that we are living uncertain times. The markets don’t seem too surprised on the election results, but until a clearer picture emerges on the political front regarding government and the (possible change in the) persona of the prime minister, volatility in most financial markets will prevail. Time to bet on it? It is hard to predict directional changes; but whatever the chaos, a crash is not guaranteed.

By Dr Emese Lazar

Published 9 June 2017

You might also like

University Cements its Top 20 Place in the Guardian's University Guide for Business & Management

26 May 2011
The University of Reading has been ranked 11th on the Business and Management section - which includes the ICMA Centre - of the Guardian's University Guide.
Rankings news

Medieval Foreign Exchange

23 January 2012
Financial experts from the University of Reading's ICMA Centre are to investigate medieval foreign exchange. The University has recently won a Research Project Grant worth almost £200,000 from the Leverhulme Trust.[1] The research team, comprising Professors Adrian Bell and Chris Brooks, and Dr Tony Moore, will examine in detail the workings of the markets for foreign currency trade in the fourteenth and fifteenth centuries.
Press releases Research news

Growing green bonds could help the environment

28 November 2019
Whilst climate change is seen as one of the main sources of risk for global economies and societies, green bonds represent one instrument to finance the move towards a lower-carbon economy.
Business News