Morning Briefing: Global stocks slump on Brexit fears

Morning Briefing: Global stocks slump on Brexit fears

Morning Briefing: Global stocks slump on Brexit fears Global stocks slump on Brexit fears
With just 10 days to go until Britain votes on its membership of the EU, the markets are getting worried. With no-one certain of the effect that ‘Brexit’ could have on the UK economy, the other EU members’ economies and the global economy; there are real fears about the referendum. A poll released Friday suggests a 55 per cent majority want to leave the EU.

Asian markets closed sharply lower, with Shanghai and Tokyo down more than 3 per cent; the latter hit by the yen’s stronger position against the dollar impacting exporters. Japanese investors are also awaiting this week’s 2-day Bank of Japan meeting. China’s growth in fixed-asset investment was weaker than expected in data released Monday.
Brexit fears dominate in Europe along with meetings from the BoJ and the Fed this week. Most major indexes are lower so far Monday.

Wall Street and Toronto are expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,865.34 (-0.67 per cent) +1.88 per cent -0.19 per cent
TSX Composite 14,037.54 (-1.42 per cent) +2.10 per cent -4.77 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 6,083.54 (-0.53 per cent) -0.90 per cent -10.34 per cent
German DAX 9,719.94 (-1.17 per cent) -2.34 per cent -13.19 per cent
 
Asia (at close)
China CSI 300 3,066.34 (-3.09 per cent) +0.02 per cent -42.33 per cent
Japan Nikkei 16,019.18 (-3.51 per cent) -2.39 per cent -21.50 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
50.16
(-0.75 per cent)
48.58
(-1.00 per cent)
1286.80
(+0.85 per cent)
U$0.7827
 
Aus. Dollar
U$0.7397
 
 
Japanese fund managers don’t rate Abenomics
The Japanese prime minister’s economic policy is not favoured by most of the country’s fund managers. A survey by AIMA Japan and Eurekahedge revealed just 16 per cent of respondents said that Shinzo Abe’s economic plan, known as Abenomics, was a success. In 2015, that figure was 72 per cent.

Three-quarters believe that the policy has been a partial success though, but just 44 per cent believe it has future potential. There is also high expectation that the BoJ will increase its stimulus measures; 90 per cent believe so.