Any positive impact of a second Brexit referendum on financial markets would be “offset” by a win by Jeremy Corbyn’s Labour party, warned deVere Group CEO Nigel Green.

Despite Green stating that a second vote on Brexit would “likely be welcomed” by the financial sector, he argued that: “Mr Corbyn’s new approach will in the eyes of many voters make his Labour party more electable in a general election than it has been in a long while. And this prospect could spook financial markets.”

The deVere Group chief executive highlighted that uncertainty surrounding Brexit is having a “real impact” on business in the UK, the EU, as well as those around the globe that trade internationally, adding “this uncertainty has created a tangible lack of confidence, resulting in falling investment, spending and recruiting across Britain”.

“Following MPs’ abject failure to so far find a way forward through the impasse, the next move has to be to have a second Brexit referendum in order to protect jobs and secure long-term, sustainable economic growth.”

According to Green, a second referendum would be welcomed be by financial markets for two reasons. “First, it gives MPs a clear, unequivocal message either way, breaks the grinding deadlock, and reduces ongoing uncertainty,” he said.

“And second, it would increase the chances of a softer Brexit, which would have the effect of producing a relief rally in Sterling, UK financial assets, and also a spurt in economic activity in Britain, as delayed household and business spending is unleashed.”

Green believed that Corbyn’s new approach will “in the eyes” of many make his Labour party more electable in a general election than it has been “in a long while”, and this prospect could “spook” financial markets.

“As such, any positive impact of a second Brexit referendum on financial markets would be offset by a win by Jeremy Corbyn’s Labour party,” Green concluded.

Furthermore, Green emphasised that a growing number of high-net worth individuals and overseas investors have been in contact with the advisory firm, concerned more by the “damaging impact” a Corbyn-led government would have on their wealth over Brexit.

“High-net-worth individuals in Britain and wealthy international investors with UK assets and business know that they will be hit by Mr Corbyn’s tax hikes on wealth, income and inheritance,” he said.

The deVere CEO added that financial markets could have been expected to react “far more favourably” if the government had shifted their stance on a second referendum, rather than Corbyn.

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