Banking Stocks Most at Risk in Event of Brexit, says Rathbones

Expect sterling to tumble, and banking stocks - along with insurers and household goods companies - to take a share price hit if we vote to leave the EU next month

Emma Wall 23 May, 2016 | 4:51PM
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If Britain votes to stay in the European Union, come the result on June 24th, it will be back to business as usual for both the economy and the stock market. But what happens if the electorate votes to leave the EU?

Ed Smith, asset allocation strategist for Rathbones says that the FTSE 100 as a whole will not be hugely effected – but certain stocks will be in for a shock share price drop.

“Long gone are the days when the FTSE 100 represented the UK economy. It is a global index that happens to be located in the UK – 70% of its revenues comes from overseas. Asia economic indicators are the best measure of mapping expected earnings in the FTSE,” he said.

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Emma Wall  is former Senior International Editor for Morningstar