Ukip's Douglas Carswell By-Election Win is 'Starting Pistol for Short Term Financial Market Uncertainty'

The boss of one of the world's largest independent financial advisory organisations has warned that Ukip's victory in the in the Clacton-on-Sea by-election could be "starting pistol for short-term financial market uncertainty", due to the right wing's party Eurosceptic view.

According to Nigel Green, the founder and chief executive of deVere Group, Ukip's Douglas Carswell's landslide win, which was more than double the amount of votes Conservative's Giles Watling raked in, could lead to turbulent financial market movements.

"The historic win for UKIP has rocked the British political landscape – with just seven months to go until the general election," said Nigel Green, the founder and chief executive of deVere Group.

"The landslide win in Clacton and the huge upswing in Heywood makes the general election even more unpredictable to call.

"The results in Clacton and Heywood could serve as the starting pistol for short-term financial market uncertainty as they could prompt further defections to Ukip and, more generally, embolden the Eurosceptic movement in Britain which is of course pushing for Brexit."

Carswell defected from the Conservative Party to Ukip in August and stepped down as an MP, triggering the by-election, which he eventually won with 21,113 votes.

In January this year, UK Chancellor George Osborne told the European Union that Britain is likely to exit the bloc- dubbed a 'Brexit'- unless it overhauls its structure and the power it has over its members.

Osborne said "our determination is clear: to deliver the reform and then let the people decide.

"It is the status quo which condemns the people of Europe to an ongoing economic crisis and continuing decline. And so there is a simple choice for Europe: reform or decline," he added.

He promised if Conservative party is re-elected in 2015, they will keep their promise to renegotiate the UK's EU ties before offering Britons an in/out membership referendum.

Ukip is staunchly against remaining part of the EU.

"Brexit risks have increased due to last night's results and the momentum that they will create," said Green.

"The markets will undoubtedly be concerned by this outcome to some degree as it changes the political status quo, and this is likely to be reflected in volatility up until the general election.

"Investors would be wise to monitor this uncertainty carefully with their financial advisers."