UKIP could trigger stock market volatility
Voters in the Kent constituency of Rochester and Strood are going to the polling booths to elect a new representative after their Conservative MP, Mark Reckless, prompted a by-election after defecting to UKIP.
Green warns: “The predicted market volatility until the next election and beyond will be driven by unsettled investors who are expressing uncertainty about the increasing chances of Brexit [a British exit from the EU], which could trigger massive disruption.
“It can be expected that the election campaign will bolster the chances of Brexit due to the possible defection of more MPs to UKIP and the wider growing Eurosceptic sentiment in the UK – which David Cameron appears to be trying to fight by considering policies that could force the UK out of the EU and by the promise of an in/out referendum by the end of 2017.
“In addition, UKIP’s victories are significant as they are dividing the vote of the main political parties, boosting the possibility of a hung parliament and a weaker government.
“Investors would be wise to monitor these potential portfolio risks carefully.”