The markets are all up sharply today. It seems as if the murder of MP Jo Cox has put paid to the small chance of a BREXIT win and that the financial industry is now assuming that any BREXIT will not happen. It is not just the FTSE but markets all across Europe which are showing gains of 2 – 3+%. Even in japan and Hong Kong, markets are buoyed by the apparent risk of a BREXIT receding. Gold is down by about 1%.
The relief in the markets is palpable.
Of course, there is still a faint possibility that BREXIT could win, but elections, like markets, depend upon mood. There is plenty of anti-EU sentiment which will not go away so easily. But the dominant mood now, I think, is that Jo Cox’s murderer cannot be seen to have won. For the markets, better the blundering and fumbling EU and the ECB than the uncertainty of a BREXIT.
BREXIT died with Jo Cox.