Since the UK’s decision to leave the European Union, investors have fretted over the impact of Brexit on the UK and European economies. At a high level, the UK and European financial sectors showed large negative returns before the vote and strong positive returns after. Risk peaked around the referendum date, only to decline abruptly afterwards. The question is, what were the main factors impacting this reversal in performance in each region and what were the contributors that led to the rise and decline in risk?
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