Just 3 per cent of UK investors expect European economy to improve in a Britain-less future

Just 3 per cent of UK investors believe the health of the European economy would improve if Britain was to exit the EU, a new study by the Rivel Intelligence Council has found.

The negative sentiment towards a Brexit was stronger among continental European investors, as only 2 per cent of respondents expect the European economy to be better off in a Britain-less future.

Seventy-eight per cent of UK investors and 77 per cent of continental European investors believe the overall health of the European economy would be improved by Britain remaining within the EU, according to Rivel.

The study also revealed that investors expect a shock for UK equity markets after a Brexit vote, with more than two-thirds of UK investors expecting a negative impact on the appeal of British stocks on a ‘Leave’ vote, a view shared by 76 per cent of continental European investors.

Rivel Research Group vice president Claire Lavery said that a very strong belief had developed among both UK and global investors that a Brexit would be bad for the European economy.

“Virtually no investors see Brexit as having a beneficial impact on the European economy. The message is clear from investors: don’t do it,” she said.

“In a world where there is almost always divergent opinion, the opinion over Brexit is overwhelmingly one-sided. Global investors see Brexit as bad for the economy and bad for UK and European stocks.”

“Such a stark consensus may be fuelled by fears over a further destabilisation of the Eurozone and a potential weakening of Europe’s ability to cope with terrorism and deal effectively with refugee crises. But ultimately, Brexit is what the market fears most: uncertainty.”

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