Brexit could cause massive instability for EU markets

Next Thursday the UK electorate will go to the polls to decide on the future relationship of the UK with the EU.

My gut instinct for the past year has been that once push comes to shove, the fear factor would push undecided voters to vote to remain and carry the day for the prime minister. That gut instinct is becoming increasingly weaker by the day.

The opinion polls are showing a Brexit lead of anything from 1% to 10%; the bookies are becoming a lot less relaxed about the outcome; and the financial markets are eventually starting to become jittery as evidenced by renewed sterling weakness, and equity market weakness in the UK and not surprisingly across the rest of Europe.