Effects of Brexit One Month After
There was and still is some uncertainty surrounding the effects of Brexit one month after now since the UK voted to leave and invoke article 50. Accurately measuring what impact the vote will have will take some time due to the complexity of collating and data processing. As the dust begins to settle we look at the current status and effects of Brexit one month after the vote.
FTSE 100
The FTSE 100 has corrected from a brief post-referendum dip. It is currently at levels not seen since August 2015. This is because many companies listed on the FTSE 100 index generate their revenue overseas. Therefore, they will benefit from the recent fall in the strength of sterling, the index’s recovery is less complimentary if you price it in dollars.
FTSE 250
The FTSE 250, has a higher proportion of companies who have domestically driven income, and has not been as strong to recover losses as the FTSE 100. Nevertheless it is still at a comparable value to much of last year. The value of the pound Before the referendum on June 23rd, the pound was trading at $1.50 to the dollar. It is now hovering around $1.30 – down about 13%. Sterling has not been at levels this low against the dollar since the mid-1980s. GBP/AED, on June 23rd was trading at around 5.47, compared to 4.82 July 25th. GBP/CNY on June 23rd was trading at around 9.8 compared to 8.77 on 25th July The pound has also lost ground on the euro. On 23 June the pound was worth €1.30. It is now trading at around €1.19.
Housing and property market
Effects of Brexit one month after the vote, has had little recorded impact. More clarity will be shed on this in a few months once more data is released. The Bank of England’s regional agents survey found that there was a dip in housing market activity after 23 June, but that transactions had so far proved to be more resilient than some had expected. UK average house prices had increased by 8.1% in the year to May 2016. It will be September before ONS data on average house price movements begins to cover the post-referendum period.
Interest rates
There was a lot of speculation surrounding the potential interest rate cut, which was not the case, interest rates have been kept at at 0.5%, where they have been since May 2009.
Effects of Brexit One Month After
There was and still is some uncertainty surrounding the effects of Brexit one month after now since the UK voted to leave and invoke article 50. Accurately measuring what impact the vote will have will take some time due to the complexity of collating and data processing. As the dust begins to settle we look at the current status and effects of Brexit one month after the vote.
FTSE 100
The FTSE 100 has corrected from a brief post-referendum dip. It is currently at levels not seen since August 2015. This is because many companies listed on the FTSE 100 index generate their revenue overseas. Therefore, they will benefit from the recent fall in the strength of sterling, the index’s recovery is less complimentary if you price it in dollars.
FTSE 250
The FTSE 250, has a higher proportion of companies who have domestically driven income, and has not been as strong to recover losses as the FTSE 100. Nevertheless it is still at a comparable value to much of last year. The value of the pound Before the referendum on June 23rd, the pound was trading at $1.50 to the dollar. It is now hovering around $1.30 – down about 13%. Sterling has not been at levels this low against the dollar since the mid-1980s. GBP/AED, on June 23rd was trading at around 5.47, compared to 4.82 July 25th. GBP/CNY on June 23rd was trading at around 9.8 compared to 8.77 on 25th July The pound has also lost ground on the euro. On 23 June the pound was worth €1.30. It is now trading at around €1.19.
Housing and property market
Effects of Brexit one month after the vote, has had little recorded impact. More clarity will be shed on this in a few months once more data is released. The Bank of England’s regional agents survey found that there was a dip in housing market activity after 23 June, but that transactions had so far proved to be more resilient than some had expected. UK average house prices had increased by 8.1% in the year to May 2016. It will be September before ONS data on average house price movements begins to cover the post-referendum period.
Interest rates
There was a lot of speculation surrounding the potential interest rate cut, which was not the case, interest rates have been kept at at 0.5%, where they have been since May 2009.
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