Effect of Brexit on Financial Market of UK - 275 Words

Effect of Brexit on Financial Market of UK (Essay Sample) Content: Effects of Brexit on Financial Market Name Institution Effects of Brexit on Financial Market Britain exit from EU made a significant effect on the Britain politics as Cameron resigned from its post and it also affected the financial markets as well. Article states that it has badly affected the stock markets and currency. It can be found that Sterling value has been decreased to 12.5 percent against Euro and 11.4 against AUD and 6.7 percent against USD (Hunter, 2016). Fall in the value of currency will definitely affect the UK trade markets. This effect can be short term as UK has to negotiate with the EU and also with other countries where the trade was done under the banner of EU. However, there is also a positive aspect of the Brixit that exports will become more competitive and it UK will also become cheaper destination point for foreign visitors. Brexit has affected the UK stock exchange badly as it experienced all time low whereas it also left significant effects on the global markets as well. Brexit supporters are arguing that EU will not leave UK alone and will invest due to its largest exports to EU, however, it is also expected that foreign investment will be reduced in UK and it will be shifted to other EU countries. Chances of recession was also discussed by several policy makers, however, according to my opinion, recession is not going to happen in any way and Brexit is great news for exporters as the Pound's higher values always affected the exporters. Short term losses to the economy and financial markets are higher, however, in long term; it ...