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Brexit
Original poster

Black Monday 3rd Oct 2016

37 replies

RBeer · 02/10/2016 17:17

With the UK now going for a (hard) Brexit and leaving the EU and its common sense, will the market crash tomorrow?

OP posts:
Kaija · 04/10/2016 10:17

That was weird - ok it was actually only once

topsy777 · 04/10/2016 11:41

FTSE250 17043 (22nd June), 18545 (this morning)
FTSE100 6261 (22nd June), 7099 (this morning)

Scare mongering has failed yet again.

The goal post has now moved to cost of living. Yes, the dream trip to NY probably has to be cancelled, but I can live with that.

TheElementsSong · 04/10/2016 11:45

Economics people - is this correct?

Investors may feel optimistic now that the FTSE 100 has broken through the 7,000 barrier, but we might not want to crack open the champagne yet. The market has primarily been boosted by the sharp depreciation in sterling post-Brexit, with the pound having fallen by around 13% from its pre-referendum highs. Around 75% of the earnings from FTSE 100 companies come from outside the UK, so sterling depreciation effectively makes these earnings worth more. In essence, the boost to the FTSE 100 has come about because investors believe the UK economy is in a worse place.

www.ft.com/content/3ae4394e-7b0d-3524-be48-f5b4739c190f

Nightofthetentacle · 04/10/2016 11:52

Yes - there is a mechanistic effect on share prices which have foreign earnings as sterling has fallen to the lowest level in 31 years. It is not something I would be pleased about.

If the exchange rate dropped really far, the FTSE would tend to infinity only slightly joking

There is more information here with specific examples www.bbc.co.uk/news/business-37485412

Nightofthetentacle · 04/10/2016 11:55

I would be exceptionally pissed off if I had to cancel my dream trip to NY, incidentally. Particularity as I would be unable to name one positive effect of the thing that had caused me to cancel...

topsy777 · 04/10/2016 11:58

Nightofthetentacle

I will have more time to work?

Kaija · 04/10/2016 19:43

Interesting chart here showing the ftse 100 rally in the context of the rest of the world, and in $. Impact of Brexit rather clearer.

Black Monday 3rd Oct 2016
OlennasWimple · 04/10/2016 20:11

I watched an interesting advert yesterday - hope to see it again so I can pay attention properly from the start. (I'm in the US, BTW)

It basically said "Brexit - it's a funny word. But because of it, we are able to offer you these amazing low loan rates" Hmm

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