Stress Testing Brexit and Trade Wards Thumbnail 2019

How to Stress Test the Upcoming Brexit and Trade Wars

Damian Handzy, Ph.D.
Chief Risk Advisor, StatPro
Seddik Chacrone, Ph.D.
Head of North American Risk, StatPro
21 November 2018

Download our latest thought leadership ARTICLE and find out that:  

  • FX and equity options markets provide insight into how markets might react to either a “Deal” or “No Deal” Brexit
  • While markets are trading consistently with a slight prediction towards a “No Deal” future, the market movements in either case are likely to be large
  •  Brexit’s next phase will likely see large market movements that can be stress tested well in advance of actual market gyrations
  • The US-led trade wars are likely to spur a flight-to-quality, parts of which may be counter-intuitive
  • While the entire world will suffer economically if these trade wars persist, it’s the US that is likely to come out the relative winner
  • Trade wars, like Brexit, can also be stress tested with our suggested market movements