British markets spooked by Scottish referendum poll result
British financial markets tumbled yesterday after an opinion poll showed for the first time this year that Scots may vote for independence in a referendum next week that would see the break-up of the United Kingdom.
British financial markets tumbled yesterday after an opinion poll showed for the first time this year that Scots may vote for independence in a referendum next week that would see the break-up of the United Kingdom.
Sterling fell more than 1 per cent - its biggest one-day drop in 13 months - to US$1.6141, long-dated government bonds fell and £3.5 billion (HK$44.27 billion) was wiped off the market value of six London-listed companies with large exposure to Scotland.
Unionists played down the market moves. Alistair Darling, a former finance minister who leads the unionist "Better Together" campaign, said it was natural in the run-up to a vote. "For as long as there's uncertainty, you will get a bit of jitteriness in the system," he told reporters in Edinburgh.
After months of polls showing nationalists heading for defeat, the survey by the respected YouGov pollster raised the real prospect that secessionists could achieve their goal of breaking the 307-year-old union with England.
British newspapers headlined the biggest domestic threat to the United Kingdom since Irish nationalists created a breakaway republic almost a century ago.
"Scots vote chaos - Jocky Horror show", read the front page of , Britain's most-read daily, while the right-wing declared: "Ten days to save the Union."
In Scotland, the pro-union cautioned against a panic reaction and some investors said the sell-off over Scottish independence fears was overdone. "A strong bounce in sterling is likely on a 'No' vote, which is still very much the most likely outcome," said Trevor Greetham, a fund manager at Fidelity. "In the event of a 'Yes', things would get messier."
The FTSE 100 Index of blue-chip companies fell as much as 1.2 per cent, dragged down by Babcock, Lloyds Bank, Royal Bank of Scotland, Standard Life, energy group SSE and the Weir Group.
