Daily Management Review

The Fear Of Brexit Shakes The Global Economy Markets


06/14/2016


A fateful turn of Brexit can cause European recession, fears analysts.



The financial markets across the globe demonstrated the fear of Britain quitting the European Nation, which pushed “Asian and European shares” further down, while pound hit “an eight-week low” ground.
 
The reduced job openings clubbed with apparent shaky foothold of the global economy is an indication that “even the United States is not ready for the higher interest rates” which the banks are suppose to executive in order to “shore up profitability” in case Brexit takes place, while another fear of European recession has been lurking in the horizon for the past few weeks.
 
Reuters reports:
“Those concerns came to the fore on Monday, however, as European shares .FTEU3 fell 1.5 percent drop and Asian stock markets logged their biggest falls in four months after a poll late on Friday gave Britain's "Leave" camp a 10-point lead”.
 
In the words of LONTRAD’s Managing Director, Zeg Choudhry:
"We're in uncharted territory in front of the Brexit vote, and then there's also the Fed this week. So the wall of worry is quite high at the moment”.
"All the banks are a little bit lower, and they're the ones which are likely to get hit. For the next two weeks, you've got to be slightly mad if you've not got your money in defensive stocks."
 
The Chinese data exhibited poor result as the “fixed-asset investment” fell by ten percent, and stock market touched bay after sliding down by three percent. On the European front the moves were “slightly more subdued”, while the “Frankfurt .GDAXI and Paris .FCHI stock exchanges” slipped down by “1.5 percent”.
 
However, a note from “Deutsche Bank strategists” stated:
"In the case of a 'Leave' vote in the UK referendum ... we expect UK equities to outperform the European market, given the likely GBP (British pound) depreciation in such a scenario as well as the market's defensive sector structure”.
 
While, another note from Swiss group’s economists stated:
"If activity does slow further beyond the end of the second quarter, the market is likely to rapidly start considering how (the Bank of England) may choose to enact any further easing”.
 
Furthermore, the European head of the “Global Markets Research” in Bank of Tokyo-Mitsubishi’s London branch, Derek Halpenny, said:
"While the pound is the worst-performing G10 currency versus the dollar this year, the yen is by far the best”.
"The continued surge of the yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing."
 
 
 
 
 
 
References:
http://www.reuters.com/







Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat