Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

FTSE could fall over 10 percent if UK votes to leave EU: UBS Wealth Management

Published 06/02/2016, 06:00 AM
Updated 06/02/2016, 06:10 AM
© Reuters. A worker shelters from the rain as he passes the London Stock Exchange in the City of London

LONDON (Reuters) - Britain's benchmark FTSE 100 (FTSE) equity index could fall by more than 10 percent in the next year if the country votes this month to leave the European Union, UBS Wealth Management estimated on Thursday.

UBS Wealth Management added that, in contrast, a decision to stay in the EU could see the FTSE rise by up to 5 percent over the next 12 months.

"Should UK citizens vote to leave the European Union, we could see the performance of the FTSE 100 index fall by over 10 percent," said Caroline Simmons, deputy head of the UK Investment Office at UBS Wealth Management.

"The stock market valuation could drop closer toward valuations seen during the 2012 euro crisis, but this would be cushioned by an 8 percent boost to earnings from the weakness we foresee in the pound," she added.

UBS Wealth Management forecast sterling/dollar falling to 1.25 and sterling/euro (GBPEUR=) down to 1.20 on currency markets if Britain voted to leave the EU.

© Reuters. A worker shelters from the rain as he passes the London Stock Exchange in the City of London

While a YouGov poll published on Wednesday showed British voters evenly split between "Remain" and "Leave" ahead of the ballot, two surveys the previous day - one online and one conducted via telephone - showed British voters had moved towards voting to leave the EU.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.