Riding the Brexit Storm: London’s Art Market Experiences Volatility

The financial markets were not alone in dealing with the pre- and post effects of Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term. During the two weeks of auctions surrounding Britain’s historic vote to leave the European Union, London’s art market experienced its fair share of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

Uncertainty leading up to the referendum left some sellers hesitating to part with holdings. The political and economic volatility that followed voters’ shock decision, with the pound plunging the next day and the British prime minister resigning, disrupted some sales but triggered others, according to Bloomberg.

Although a £14 million Gerhard Richter painting was withdrawn at the last minute from Christie’s and the world’s largest rough diamond failed to sell at Sotheby’s this week, buyers from Asia and the U.S. are reported to have engaged in frantic bidding, taking advantage of the currency discount to set records for many artists.

The two weeks of auctions began at Sotheby’s on 21 June which saw Pablo Picasso’s 1909 Cubist painting “Femme Assise” sold for £43.3 million while Amedeo Modigliani’s “Jeanne Hebuterne (au Foulard)” took £38.5 million, both works exceeding the targeted estimates.

The final event of the auction cycle was Christie’s 250th anniversary sale on Thursday, spanning three centuries and tallying £99.5 million, within the estimated range. It was led by Henry Moore’s curvaceous, monumental bronze that fetched £24.7 million, exceeding the high pre-sale estimate of £20 million and setting an auction record for the British sculptor.

Sotheby’s also saw its share of Asian buying. On June 28, Chinese billionaire Liu Yiqian’s Long Museum fought to win a monumental Jenny Saville painting, outbidding four competitors in a sale that tallied £52.2 million, a record for the artist.

While the volumes of sales diminished dramatically compared with a year ago, dealers and auction house executives highlighted the high percentage of sold lots at most auctions during the past two weeks at Sotheby’s and Christie’s, suggesting that there is a substantial demand for art consumption. The weaker pound didn’t hurt either.