Financial uncertainty to intensify at prospect of soft Brexit: deVere

As Prime Minister Theresa May forms a coalition with the DUP, Green says "May no longer has the ability to deliver on this as she did even 24 hours ago, for two key reasons".

 The first is because the British public "largely rejected much of the Conservative manifesto which championed a hard Brexit" and secondly because the DUP have said they will not back a hard Brexit.

Green continues: “The financial markets had almost already priced-in a hard Brexit and will now have to quickly reassess their position. As this adjustment takes place we can expect the uncertainty in the financial markets not only to continue but to intensify.
 
“Looking towards Theresa May striking a soft Brexit agreement, the pound will begin to regain ground, short-term gilts will fall in price as yields go up and FTSE100 stocks will fall as the likelihood of an improving economy emerges.
 
“The bloody nose delivered to the British government last night by the electorate means the UK’s power at the Brexit negotiations is now likely to be relatively weak. This further complicates the talks, due to start on 19th June, and combined with the markets’ readjustment, means we’re entering turbulent waters in the short term.”