Yen’s surge hits Japan’s exporters in June

Having fallen heavily in the wake of the UK’s shock decision to quit the European Union (EU), Asian markets experienced a slight rebound as June drew to a close. Japan’s Prime Minister, Shinzo Abe, attended an emergency meeting between the Government and the Bank of Japan (BoJ) to discuss the implications of the UK’s exit … Continue reading “Yen’s surge hits Japan’s exporters in June”

Strong demand for defensive and high-yielding stocks

Global markets experienced their worst-ever two-day loss in the wake of the UK’s decision to quit the European Union (EU), losing a record US$3.01 trillion, according to S&P Dow Jones Indices. Nevertheless, the leading mainstream US equity indices managed to rebound from sharp initial losses to end the month in marginally positive territory. The Dow … Continue reading “Strong demand for defensive and high-yielding stocks”

Global bond yields plummet

Investors’ appetite for high-quality bonds received a huge boost during June. Demand surged following a shock victory for Brexit campaigners in the UK’s referendum over its future membership of the European Union (EU). The news triggered turmoil in financial markets: equity prices plummeted and investors focused on perceived “safe-haven” assets, including the Japanese yen, gold, … Continue reading “Global bond yields plummet”

Gilt yields plunge after Brexit vote

UK gilt prices surged during June, boosted by an unexpected triumph for “Brexit” in the referendum over the UK’s future membership of the European Union (EU). Sterling and gilt yields fell sharply amid renewed expectations of lower interest rates. Over June as a whole, the yield on the ten-year UK gilt plunged from 1.56% to … Continue reading “Gilt yields plunge after Brexit vote”

Brexit decision shocks UK markets

Sentiment during June remained hostage to the fortunes of the referendum on the UK’s future membership of the European Union (EU). Market performance was volatile in the run-up to the vote; however, on balance, investors appeared to believe that most voters would ultimately opt to remain in the EU. However, in a surprising turn of … Continue reading “Brexit decision shocks UK markets”

Volatility and lower yields in June

Share prices in the UK plunged in June following the UK’s unexpected decision to leave the European Union (EU). In the much-discussed referendum, a narrow majority voted in favour of Brexit, triggering turmoil across global financial markets. In the UK, gilt yields posted sharp declines, the pound plunged to a three-decade low against the US … Continue reading “Volatility and lower yields in June”

Even lower for even longer: How low can they go?

Interest rates held, for now…. Mark Carney surprised markets by not cutting interest rates. However, he has made it clear that he is poised to cut whenever the moment demands and while this threat hovers over markets, slightly bonkers asset pricing can persist. But while the high price of defensive assets may persist, it doesn’t … Continue reading “Even lower for even longer: How low can they go?”

What does Brexit mean for trade?

The fallout from the United Kingdom’s vote on European Union membership, in which the ‘Leave’ campaign won a narrow victory, will have a wide range of repercussions that are difficult to assess in terms of scope, duration and size. The initial impact of this result has been global, and uncertainty remains a part of the … Continue reading “What does Brexit mean for trade?”

Investors shocked by referendum result

  June 2016 is set to go down in history as one of the more eventful months in recent memory. In the much-discussed referendum over the UK’s future within the EU, a narrow majority of Britons voted by 52% to 48% in favour of quitting Europe. Financial markets were rocked by the news: share prices … Continue reading “Investors shocked by referendum result”

Brexit: keep calm and carry on seizing business opportunities

Despite last week’s referendum result it’s important to remember nothing has actually changed for now‎.  The UK is still a member of the EU, it is still the world’s fifth largest economy and is still home to a huge range of fantastic companies. Our relationship with Europe will evolve over time but I have no … Continue reading “Brexit: keep calm and carry on seizing business opportunities”

The Brexit trade-off

Amidst the uncertainty around what will happen after Britain’s historic vote to leave the European Union, there is some clarity about the next steps. Boris Johnson, the prominent Leave campaigner and PM contender, has set out his views in a newspaper article in which he says that Britons will have the right to live and … Continue reading “The Brexit trade-off”

Brexit – a shock for markets, or a crisis?

Investors have been seriously wrong-footed by the result of the EU referendum. But the shock of City traders this morning is nothing compared with the stunned response of the people who thought they ran the country. The economic and political questions raised by this vote will not be answered for years, possibly decades. But the … Continue reading “Brexit – a shock for markets, or a crisis?”

Stagflation looms after UK’s EU referendum

The UK choosing to leave the EU comes as a major shock for investors and uncertainty will remain high for some time. In the near-term, the UK is likely to experience a stagflationary period of lower growth but higher inflation. After months of uncertainty and market volatility, the UK is projected to have voted to … Continue reading “Stagflation looms after UK’s EU referendum”

Risk-off sentiment prevails as the market reaction quickly prices in uncertainty

The UK’s vote to leave the EU has resulted in a significant pullback in markets but investors should not over react to today’s volatility. Non-domestically focused equities may prove the best way to navigate the market uncertainty. There are so many issues and permutations to be considered in the event of today’s Brexit vote, it’s … Continue reading “Risk-off sentiment prevails as the market reaction quickly prices in uncertainty”