Caution ahead of Fed, Brexit vote... Soros warns of impact from Brexit...
Caution ahead of Fed, Brexit vote
An air of caution has returned to markets Tuesday after some easing of fears over Brexit which led to gains for equities and commodities.
The Fed is also in focus with chair Janet Yellen beginning a two-day testimony to lawmakers which will be closely watched for some stronger signs of what lies ahead. Recent Fed words have been dovish and uncertain, giving rise to caution over the US economy.
Asian markets closed mostly higher with a weaker yen helping the Nikkei and Australia’s banks gaining to give a boost to Sydney. Shanghai was the notable exception, closing with slim losses.
In Europe, markets are generally trending higher, with London weaker; analysts and investors are keeping an eye on the polls for a steer on Brexit as many economists continue to suggest negative impact if Britain leaves the EU.
Wall Street and Toronto are expected to open higher. Janet Yellen speaks at 10am ET.
Soros warns of impact from Brexit
Veteran investor George Soros has given his assessment of a potential Brexit and shares the view that it could be painful.
CNN reports that Soros, “the man who broke the Bank of England” in 1992 by betting heavily against the pound, believes that Brexit could trigger a slump in the UK currency that would be worse that in 1992.
Among the potential issues that a new “Black Friday” could bring are an inability for the BoE to take the step that it did 24 years ago by cutting interest rates as the pound fell. Rates are already very low in 2016.
An air of caution has returned to markets Tuesday after some easing of fears over Brexit which led to gains for equities and commodities.
The Fed is also in focus with chair Janet Yellen beginning a two-day testimony to lawmakers which will be closely watched for some stronger signs of what lies ahead. Recent Fed words have been dovish and uncertain, giving rise to caution over the US economy.
Asian markets closed mostly higher with a weaker yen helping the Nikkei and Australia’s banks gaining to give a boost to Sydney. Shanghai was the notable exception, closing with slim losses.
In Europe, markets are generally trending higher, with London weaker; analysts and investors are keeping an eye on the polls for a steer on Brexit as many economists continue to suggest negative impact if Britain leaves the EU.
Wall Street and Toronto are expected to open higher. Janet Yellen speaks at 10am ET.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,804.87 (+0.73 per cent) | +1.74 per cent | -1.17 per cent |
| TSX Composite | 14,015.14 (+0.82 per cent) | +0.69 per cent | -4.35 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,187.99 (-0.26 per cent) | +0.51 per cent | -7.79 per cent |
| German DAX | 9,964.88 (+0.03 per cent) | +0.49 per cent | -9.74 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,106.32 (-0.20 per cent) | +0.91 per cent | -33.01 per cent |
| Japan Nikkei | 16,169.11 (+1.28 per cent) | -3.39 per cent | -19.85 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 50.20 (-0.89 per cent) |
48.95 (-0.85 per cent) |
1283.70 (-0.65 per cent) |
U$0.7833 |
| Aus. Dollar |
|||
| U$0.7499 | |||
Soros warns of impact from Brexit
Veteran investor George Soros has given his assessment of a potential Brexit and shares the view that it could be painful.
CNN reports that Soros, “the man who broke the Bank of England” in 1992 by betting heavily against the pound, believes that Brexit could trigger a slump in the UK currency that would be worse that in 1992.
Among the potential issues that a new “Black Friday” could bring are an inability for the BoE to take the step that it did 24 years ago by cutting interest rates as the pound fell. Rates are already very low in 2016.
