Contextualising Brexit - ANZ

Research Team at ANZ, notes that the UK voted itself out of the European Union and sparked a wave of volatility in global markets.

Key Quotes

“The coming weeks will remain highly uncertain as the timing of the exit, the makeup of the UK’s leadership and the future of the EU remain in doubt.

This uncertainty can impact on the AUD and NZD through three channels. Market function, business and consumer confidence, and medium term global growth concerns.

For now the market is functioning well, but it is too soon to tell how large the impacts of growth concerns will be. In the meantime the antipodes will likely outperform the GBP, but valuation concerns mean other safe havens like the USD and JPY will continue to outperform significantly.”