The ‘B’ word is coming!
The day after the EU referendum was one that few could have predicted. Shares fell drastically, only for some to recover losses by the afternoon. Some traders had a field day; some feel like they may have missed out. However, crucially, the result of the referendum means that we now find ourselves in as yet uncharted territory.
With Article 50 looming and Brexit negotiations beginning, the UK could see similar once-in-a-generation trading opportunities arise. We are in an unprecedented period for the UK economy and it couldn’t be more exciting.
This report will not only provide you with an outlook for what to expect from UK-EU negotiations, but also an in-depth analysis of the immediate aftermath of the referendum result and six stocks that could see their share prices move significantly over the course of the next two years as Brexit is played out before the world.
What happens once Article 50 is triggered?
When Article 50 is triggered in March, the door will be opened for the government to negotiate its terms for leaving the European Union, which will include subjects such as trade, determining legal jurisdiction, travel and working rights of UK and EU citizens in the others’ respective territory and, of course, access to the European Single Market, with all 27 EU member states needing to agree on the conditions of Britain’s exit of the bloc.
All of these issues are likely to take the headlines for the next two years, with news likely to be provided almost daily on the progressions of talks – no doubt with some rumours thrown in for good measure! Brexit minister David Davis has told MPs that there are likely to be ‘many, many, many’ votes taking place over that period, so you can be sure that there will be disagreements aplenty in UK parliament. Business as usual, but with added spice.
Subsequently, we could see the UK Index , Pound Sterling and the Euro move significantly in reaction to the flavour of the day, whether that includes agreements being reached or some talks becoming in danger of falling through.
Article 50 is bound by a set timeline, with the process allowed to take a maximum of 2 years. Although Theresa May is hoping that negotiations can be completed in an 18-month timespan, once the deadline is reached, if no final deal has made, the UK will leave the bloc without any negotiated deal and will revert to WTO trade rules.
As the many pieces of the Brexit puzzle come together, we’re here to help you find attractive trading opportunities that could be just around the corner, no matter what the mood of the UK government or the EU.
Over the page we take an in depth look at the hours, days and months that followed the referendum and outline the possible economic implications that Article 50 could bring along once triggered in March.