Asian equity markets are mixed as investors assess the fallout of the Brexit decision and panic selling on Friday. There are some signs of "buyer's remorse", as over 2 million Britons have signed a petition calling for a do-over of the referendum, claiming too narrow of a victory and below-75% turnout. Survey in the Guardian also saw 1 out of 5 UK companies considering shift in operations and some 2/3 of business leaders conclude that Brexit was bad for their business. Fin Min Osborne is expected to make a statement on Monday, seeking to "provide reassurance about financial and economic stability" in the UK, though one of the leaders behind Brexit - former London mayor Boris Johnson - declared that the negative consequences of Brexit are "wildly overdone" and the upside is being ignored. GBP/USD is still down about 250pips from Friday close, as Moody's changed its outlook on UK sovereign rating to negative from stable due to the impact of Brexit. Spain Parliamentary elections were less troublesome for the ruling conservative Popular Party as it took 137 out of 350 seats - up from 123 in December - but still not decisive to give it a ruling Majority. Spain Parliamentary elections were less troublesome for the ruling conservative Popular Party as it took 137 out of 350 seats - up from 123 in December - but still not decisive to give it a ruling Majority. PP is still expected to look for coalition help, while the opposition alliance of left-wing Podemos / United Left only took 91-95 seats - results its leaders deemed as disappointing. Verbal intervention remained heavy in Japan, where PM Abe held a meeting with BOJ Dep Gov Nakaso and and Fin Min Aso. Abe said it was critical to strive for greater market stability amid uncertainty following the Brexit vote, adding he has held phone discussions with BOJ Gov Kuroda and also instructed Finance Ministry to take all necessary measures in FX markets.
Nikkei +2.24% Hang Seng -0.50% CSI +1.16% Shanghai +1.12%
Eur$ 1.1039 CNH 6.6604 CNY 6.6395 JPY 101.74 GBP 1.3398 CHF 0.9749 RUB 65.2660 WTI$ 47.53 (-0.25%)
S&P -0.30% EuroStoxx -1.50% Dax -1.33% SMI -1.83%
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
- China’s May Industrial Companies’ Profit Rises 3.7% Y/y
- European IBs Are Exposed to Brexit, Citi Says, Cuts PTs 8%-12%
Keep an eye on :
- AAL LN : Anglo American Said to Close Coal Mines Sale Within Weeks: FT
- BAYN GY : Bayer CEO Says No Pharma Targets as Attractive as Monsanto: WSJ
- 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
- LSE LN : LSE/DB merger faces mounting German opposition; LSE CEO digs heels in over London HQ while Germany considers full takeover - Sunday Times
- 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
- SAN FP : Sanofi, Boehringer Sign Contracts on Unit Swap
- 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