In one of the largest global risk events, a majority of citizens in the United Kingdom voted to leave the European Union, taking the market by surprise.
Traditional safe havens such as US Treasuries and Japanese Government Bonds were Bid. Inversely, yields have fallen.
10-Year US Treasuries broke through 1.50%, trading as low as 1.475%, down from yesterday’s market close of 1.63%.
The British Pound has fallen dramatically against the US Dollar (GBPUSD) and is now trading at 1.3327, down from yesterday’s close at 1.5016.
The Japanese Yen has strengthened against the US Dollar (USDJPY) to as high as 99.007 per US Dollar as investors rush into safe havens in search of stability. Previous night’s close was 106.615 Yen per US Dollar. The Bank of Japan to supply market with liquidity to support its base.
Equity markets in Japan have halted to stop the free fall.
Global equities are down. Dow futures down 652 points, S&P 500 futures down 102 points, Crude oil down $3, Gold up +70 points.
We will continue monitoring the markets.
Feel free to give us a call if you need anything.
Danny
