Expect election-induced mayhem across financial markets, warns deVere CEO

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09 Jun, 2017

Expect election-induced mayhem across financial markets, warns deVere CEO
 
The shock UK election result is set to unleash mayhem across global financial markets, warns the boss of one of the world’s largest independent financial services organisations.
 
The warning from Nigel Green, the founder and CEO of deVere Group, comes after a night of high tension and surprises in the UK’s snap election.
 
Mr Green affirms: “Whilst Theresa May’s Conservatives are set to be the largest party, they’ve not managed to secure an overall majority.  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.  The PM’s gamble has backfired hugely.
 
“With Theresa May’s job now surely on the line just as the UK is set to begin Brexit negotiations, and a clear shift in voting dynamics across Britain, there is yet another enormous storm cloud of uncertainty about who and how the talks will be led.”
 
He continues: “Indeed, 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.
 
“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.”
 
Mr Green concludes: “Volatility is the only certainty in these uncertain times.  But, of course, volatility can also bring considerable opportunities and investors should avoid knee jerk reactions at this time.”

Today's earlier news - Theresa May reaches deal with DUP to form government