Brexit Could Trigger End of EU as Multiple Referendums Gather Steam

All of which will makes markets around the world shudder, shrug and generally behave like petulant teenagers. “Stocks have entered a new realm of volatility, unlikely to abate anytime soon,” according to a Wells Fargo research note issued on Monday. It warned, “Get used to it.”

But it would be wrong to focus exclusively on Britain when considering the possible financial ramifications and permutations. In a truly dire scenario, Britain is just the leading domino. It’s the next dominoes — most likely across the Channel — that matter more.

“We see Brexit as just one step in a process that is unavoidable of further referendums by other nations to exit the E.U.,” Felix Zulauf, an investor who operates a hedge fund in Switzerland, wrote in a note on Monday, contending that “the damage” of Brexit “will therefore be far worse for the E.U. than for the U.K.”

Of far greater concern will be if other European Union countries attempt their own exits — even if their efforts are unsuccessful. More glimmers of no-confidence among nations in the consortium could ultimately lead to a crisis that would be felt far beyond Europe.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.