Thomas Clarke, a portfolio manager on the Dynamic Allocation Strategies team, told The Sunday Times of London that the Brexit vote is likely to embolden anti-establishment parties across Europe to push for their own European Union (EU) votes.
The Sunday Times of London noted that Italy's Five Star Movement called last week for a referendum on the euro after making sweeping gains in local elections, and that demand was echoed by French National Front leader Marine Le Pen and Dutch anti-EU politician Geert Wilders on Friday.
"It's a big blow to the EU leadership at a time when populism is on the rise," Clarke said. He added that with economies on the eurozone's southern periphery still fragile, it is no surprise that assets in those countries were first to suffer after the Brexit vote.