Global investors don’t believe in Brexit’s benefits – research

A study led by research firm Rivel Research has found out UK and global investors assess the UK remaining in the EU would be the best outcome for the overall European economy.

Some 333 global buy-side investors have been interviewed. Only 3% of UK investors and 2% of continental European investors believe the European economy would improve if the UK was to exit the European Union.

Investors from the US and Asia/Pacific regions do not feel much enthusiastic at the idea of a Brexit occurring since only 1% and 3% respectively see the Brexit as positive for the European economy.

The survey shows that 78% of UK investors and 77% of Continental European investors believe the European economy would improve if Britain remains within the EU.

Regarding UK equity markets, Rivel’s research suggests a pessimistic outlook from investors in the event of a Brexit.

More than two-thirds of UK investors expect a negative impact on the appeal of British stocks on a ‘Leave’ vote while 76% of Continental European investors agree with this view.

A Brexit would also negatively impact the attractivity of eurozone stocks according to 73% of UK investors and 60% of European investors.

Claire Lavery, vice president at the Rivel Research Group, commented: “A very strong belief has developed amongst both UK and global investors that a Brexit would be bad for the European economy.

“Virtually no investors see Brexit as having a beneficial impact on the European economy. The message is clear from investors: don’t do it.

“In a world where there is almost always divergent opinion, the opinion over Brexit is overwhelmingly one-sided. Global investors see Brexit as bad for the economy and bad for UK and European stocks.

“Such a stark consensus may be fuelled by fears over a further destabilisation of the eurozone and a potential weakening of Europe’s ability to cope with terrorism and deal effectively with refugee crises. But ultimately, Brexit is what the market fears most: uncertainty.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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