Comment: Brexit - finally some clarity

Michael Livijn, Chief Investment Strategist.
19-12-13 10:25 | Markets and investments

The election yesterday in the UK offered something that has been a rarity during the three-year-long soap opera called Brexit: some clarity. British voters gave the conservatives (Tories), led by Prime Minister Boris Johnson, a clear mandate to go through with a Brexit as exit polls indicated 368 of 650 seats for the party.

For Johnson, this means gaining an absolute majority as well as the possibility to secure a fast Brexit. Since he already has a deal ready to present to the parliament. The markets reacted immediately to the news and the British pound soared on the result.

Graph GBP since the Brexit referendum

The next step after the exit on 31 January will be negotiations about future ties with the European Union, in other words the actual divorce. Based on past experiences we don’t expect this to be a walk in the park, thus leaving some continued political risk surrounding the issue.

However, relative to the situation yesterday, the risk level has decreased markedly., leading to forecasts for Europe and European shares looking brighter. The slow down in the region has mainly affected the manufacturing sector but there have been some signs of a stabilization in the past months. With a straighter Brexit path ahead and yesterday’s trade agreement between the US and China, Europe should start looking more attractive to investors, who have been exiting the region en masse since 2016. We are keeping our overweight stance on European shares.

Read more news

Showing 5 of 813 results

Looking for job during online

Notice to Nordea’s Annual General Meeting and additional webcast for shareholders afterwards

About Nordea

Nordea’s Annual General Meeting (AGM) will be held on Wednesday 24 March 2021 at 14.00 EET in Helsinki. Due to the coronavirus situation it is not possible t...

Nordea On Your Mind: E-commerce and corona

Markets and investments Nordea podcasts

In the latest issue of Nordea On Your Mind, we explore the COVID-19 pandemic's disruption of business models and turbocharging effect on e-commerce.

Euromoney survey logo

Nordea best at Private Banking in Euromoney 2021 survey

About Nordea

Euromoney has named Nordea as the best provider of Private Banking services in Nordic region and the Baltics in their annual private banking survey.

António Guterres

Nordea speaker when asset owners met with the UN Secretary-General on new climate commitments

Sustainability

Nordea Life & Pensions is one of the founders of the alliance and was represented at the meeting by Katja Bergqvist, Nordic CEO of Nordea Life & Pensions. Sh...

Showing 5 of 813 results