British voters not hung up with EU exit

As UK voters make up their minds before an election on May 7, the issue that matters to financial markets is one that’s barely troubling them.

Opinion polls show a referendum on leaving the EU, a signature policy of the governing Conservative Party, is way down the priority list of an electorate more concerned with healthcare, immigration and economic recovery. Executives and investors say the prospect of an EU exit would hit confidence in stocks, bonds and the pound as well as push some companies to freeze spending.

“A referendum opens up uncertainty about the future of the UK economy and its relationship with Europe, which is potentially destabilising for investment,” John Stopford, head of fixed income at Investec Asset Management in London, said in an interview on Wednesday.