Neither bookmakers believed in Brexit, but has been consummated. And investors have put in place risk off mode, fled to their shelters and causing very violent movements in the markets, with sharp falls in the stock markets.
main victim pound. The British currency is undergoing a unprecedented collapse , worse even than the famous Black Wednesday, after the referendum that gave the victory to itself the abandonment of the United Kingdom of the European Union. Follow the minute by minute all the information about the Brexit.
“The panic is palpable,” summarizes John Gorman, Nomura. “It’s the kind of thing that happens once in life,” adds Chuck Self, chief investment officer at iSector. “Most people will feel the dollar” , warns.
Sterling has reached a sink more than one 10% first thing, though as has moved the session falls move at around 6%. But it is not the only one suffering: the single currency has also come to fall more than 4% against the dollar, the worst drop since its introduction in 1999, although moderating decline to 2%.
by contrast, the Japanese yen and Swiss franc, usual shelters in times of uncertainty, recorded strong gains. Curiously, bitcoin, the cryptocurrency, strong promotions are also noted.
Markets in risk off
way Nervousness has also moved to the debt with the risk premium, for example in Spain fires more than 20% compared to yesterday’s close, with investors buying German debt, another classic in times of distress. All assets considered risky, such as the currencies of emerging countries and commodity exporters, are collapsing.
In other markets, Gold , the safe haven par excellence is shoot about 5% while oil falls more than 4% in both the US West Texas . And Brent, the European benchmark
The way risk off has been launched at full power: investors flying mass to anything that is considered refuge from the yen to the US Treasury.
and the market moves by blocks, only it matters if the asset is ‘dangerous’ (and falls) or ‘safe’ (and rises strongly).
the result has taken with the changed foot currency markets, who had seen the British currency rose in before the referendum to some polls gave the victory to the field of ‘Bremain’ days. In fact, European equities is poised to suffer its worst session since the 1987 crash.
huge drop Pound is very superior anyone who has known: for example, the famous Wednesday Black 1992 when the British currency was ejected from the European exchange rate mechanism, soloed caused a down 4.1%.
the famous speculator George Soros, who was behind the big bets against the pound that day, and warned this week that a Brexit could result collapse of the largest coin that then lived.
on that day, the investor won 1,000 million dollars and became the man who broke the Bank of England. Against the dollar, is falling to levels not seen since 1985, the year in which the great powers had to unite to intervene in the currency market to the strong dollar.
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