The Brexit decision definitely dominated the news in the past weeks and also influenced the markets. Global markets plunged after the unexpected result and the following uncertainty. Only a few industry sectors and markets benefited: The basic resources sector gained as precious metals miners advanced to new highs on the back of stronger metal prices. The rise of the basic resources sector positively impacted markets such as Canada and Australia that have a strong industry share in this sector. These markets reacted with a more muted drawdown, while already less stable economies suffered the most.
The development of equity markets after the referendum put a light on how interdependent global markets are, as worldwide revenue streams have grown in recent years. Knowing about the relationship between revenue exposure and performance, investors can tilt their portfolios in the desired directions. With our STOXX True Exposure Indices (STOXX TRU), investors can decouple their portfolios from regional crises, decisions and events.
Please find additional information within the Monthly Index News or download our research paper about the STOXX TRU Indices and the impact of the Brexit on stock prices directly.
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STOXX Monthly Index News: Brexit Vote Shocks Europe
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