Weekly Update
Dow -1.55% S&P -1.63% NAsdaq -1.92% Russell -1.50% Nikkei -4.15% Hang Seng +0.44% CSI -1.07% Shanghai -1.07% EuroStoxx -2.56% Dax -2.08% FTSE +1.95% CAC -2.08% Dax-0.77% Ibex -6.87% MIB -7.09% SMI +0.44%
On Friday, the UK voted to quit the European Union after more than four decades of membership, upending global markets and sending the pound to its weakest levels since the mid 1980s. The stunning rejection of Europe's political and economic order prompted Prime Minister Cameron to resign, and global central banks were scrambling to ensure markets continue functioning normally. Asian equity markets cratered, with the Nikkei closing down nearly 8% on Friday and the yen surged, with USD/JPY briefly dipping below 100 for the first time in three years. The CAC fell nearly 8% and the DAX declined nearly 7%, while in the UK the FTSE was only off 2.2% as the surge in gold prices helped hold up the index - where many of the largest global gold miners trade. Gold surged to two-year highs around $1,325. The 10-year Bund yield dipped as low as -0.17%, while the German 30-year yield nearly went negative. The reaction in the States was a bit less harsh, but nonetheless share prices plunged and Treasury prices surged along with the US Dollar. For the week the Dow closed down 1.6%, Nasdaq -1.9%, and the S&P lost 1.6% to finish at a three month low.
Macro :
- Italy’s Padoan Says ‘Time to Think the Unthinkable’: Corriere
- Dijsselbloem Says U.K. Shouldn’t Be Punished for Leaving EU
- EU Bank Policy Can Be More Ambitious After Brexit, Giegold Says
- U.K.’s Jonathan Hill Resigns as EU Commssioner After Brexit Vote
- Austria Cut by Moody’s, Citing Weakness in Growth Prospects
- European Union’s Aaa Rating Affirmed by Moody’s; Outlook Stable
- United Kingdom Outlook to Negative by Moody’s; Ratings Affirmed
- Investor George Soros calls for reconstruction of EU after 'Brexit' vote http://reut.rs/28Ua8Tw
- Japan considering unilateral Yen intervention after UK votes for a 'Brexit' - Nikkei
Keep an eye on :
- AAL LN : Anglo American Said to Close Coal Mines Sale Within Weeks: FT
- CABK SM : CaixaBank Takes EU24.3b in ECB TLTRO-II; Net New Borrowing EU6b
- DBK GY : Deutsche Bank’s Sewing Sees U.K. Banks Hit Hardest by Vote: FAS
- EDF FP : EDF confirms commitment to Hinkley Point despite UK’s vote for Brexit; CEO eager for decision after 4 July union consultation - http://reut.rs/28Ufh2z
- FRE GY : Fresenius Said Near Deal to Buy Pfizer Device Unit: Marketwatch
- FRE GY : Fresenius Names Stephan Sturm as New Chief Executive Officer
- INTC US : Intel weighs sale of cyber security business - FT
- KU2 GY : Midea Offering Kuka Long-Term Guarantees: Frankfurter Allgemeine
- LLOY LN :Government shelves plans to sell RBS and Lloyds shares - http://on.ft.com/28TgW3G
- RBS LN : UK government may retain stakes in Lloyds and RBS for years following vote for Brexit - FT
- RCS IM : RCS BoD rules that improved Cairo Communications public offer still not adequate for shareholders
- RCS IM : RCS public offer by International Media Holding increased from EUR 0.7 to EUR 0.8 per share
- SNH GY : Woolworths' Big W business attracts Steinhoff International
- STL NO : Statoil Economist Says Brexit May Lead to Higher Oil Demand: DN
- TEF SM : Telefonica denies Brexit will delay decisions on Telxius and O2 - http://reut.rs/28TjwXy
- TIT IM : Oi Aiming for 50% Debt Haircut If New Investor Joins: Folha
- VOLVB SS : Volvo Sets Aside Extra EU250m to Cover EU Truck Cartel Fine
- WDI GY : Alipay Said in Talks to Buy Up to 25% Stake in Wirecard: BamS