Perhaps the most recent visible impact of Brexit fear is how it has contributed to the massive £30 billion sell-off from FTSE 100 on Tuesday. The index closed at the lowest level in two months with the mining shares leading the way down.
Yet the Sentifi’s Brexit Briefing also detects other impacts on the affected economies which are brought up in discussions among the financial crowd within the last seven days, including Netherlands, Ireland and Australia.
Brexit is expected to hit the Dutch economy severely since Netherlands, one of the U.K.’s major trading partner, is linked to the U.K. more than to other economies within the EU. According to Netherlands Bureau for Economic Policy Analysis (CPB), Netherlands may lose €10 billion, or 1.2% of its GDP by 2030, once the Leave campaign wins.
However, the Sentifi Briefing has spotted an interesting point discussed among the crowd that the majority of Dutch people support Brexit and want their own referendum to leave the EU.
80% of Dutch support #Brexit. 88% want a #Nexit referendum. Great Britain we support your battle for freedom! No #EU pic.twitter.com/xfWzh7EqmR
— Mis Standen (@Dwalingen) June 10, 2016
Harry van Bommel, MP for Holland’s Socialist Party, said in an interview with Express.co.uk: “If Britain leaves, that will give other countries courage. So now debate is beginning in the Netherlands about having a referendum on EU membership. We cannot go on the way we are – financing Greece, trying to keep countries in the eurozone. The eurozone will break up eventually.”
As one of the most affected economies in relation to Brexit, Ireland continues to be central to the crowd discussions on news, blogs and social media.
BREAKING: Brexit may mean Ireland will sink into the sea.
In other news, Brexit may mean Ireland will become most powerful nation on Earth.— Garvan Grant (@garvangrant) June 14, 2016
A recent report from the ESRI, an economic think-tank, said that a Brexit would be good for Irish businesses in terms of FDI as foreign investors would choose Ireland to do business in preference to the U.K.
“All else being equal, lower corporate tax rates, increase the attractiveness of countries to FDI, particularly for FDI coming from our side, European countries and this type of investment is motivated to get access to the European Single Market,” said ESRI’s Iulia Siedschlag, according to the Irish Examiner.
The Australian stock market also crashed along with London. Brexit worries wiped $30 billion off the ASX on Tuesday with the big four banks leading the losses. The benchmark S&P/ASX 200 was down by 2.1% to seven-week low.
“It’s about Brexit. The companies with British pounds exposure, like Henderson Group, are not doing well. However, there could be a bounce in these stocks and a buying opportunity if you believe the British bookmakers, who seem to be calling a stay vote,” said Aurora Funds Management senior portfolio manager Hugh Dive, according to the Sydney Morning Herald.
Some voices have argued that this was driven by the English politician Boris Johnson’s comment that Brexit is good for Australians.
Boris tells us #Brexit good for the Commonwealth. Australian shares slump on Brexit fears, $30 billion wiped out https://t.co/t7I7NQjXlp
— David Hulston (@david_hulston) June 14, 2016
Would this be because Boris said Brexit will be good for Australians? Thanks a lot Mr Johnson – not!
— Political Tragic (@politicaltragic) June 14, 2016
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