- New research from the University of Surrey reveals that the political and economic upheaval caused by the 2016 Brexit vote sent "financial shockwaves" across Europe.
- The study, which analysed over two decades of EU stock market data, found that Brexit-related events significantly increased volatility spillovers between European markets.
- Researchers developed a "Brexit intensity" index, tracking around 500 political and economic events, concluding that Brexit functioned as a "prolonged sequence of uncertainty" rather than a single shock.
- While larger financial markets like Paris and London transmitted volatility, smaller markets in countries such as Ireland, Portugal, and Spain were most acutely affected by the turbulence.
- The research also indicated that Brexit weakened financial integration within Europe, as the level of volatility transmission between EU markets dropped sharply following the process.
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