The results of the vote for Brexit, where supporters of a British exit from the EU has gained 51,8% of the votes, led to the collapse of all the world’s markets and currencies, except the yen. The British pound fell to the lowest level since 1985, falling to $1.33 level. At the same time the barrel of Brent fell by 6%. The Japanese yen, a “safe haven” for investors, raised at the auction almost three-year highs, soaring above ¥100 per U.S. dollar. The Euro conversely fell to its lowest level since the beginning of March, breaking the mark at $1.1.
All the Asian sites show a significant decrease of the index. Japan’s Nikkei 225 lost 8%, the index of Hong Kong stock exchange Hang Seng tumbled 4.2%. Control investment funds characterize the situation as the beginning of the panic, the consequences of which nobody can assess.
“It’s scary, and I have never seen anything like it. We expect to see the outflow of funds from almost all the assets. Many investors lose a lot of money,” said Bloomberg head of research and investment, ETF Securities James Butterfill. The main Mizuho Bank economist Vishnu Varathan in comments Bloomberg put it more emotionally: “it All goes to hell”. In his opinion, the only accurate strategy is buying gold and us Treasury securities.
The price of gold rose by 4.93%, the yield on ten-year securities in the United States decreased by 22 b.p to 1.52%. This is the biggest decline since August 2011, according to Bloomberg. “We see that investors are buying up this market and the panic is already being felt,” says the head of trading in the U.S. Bank Nomura John Gorman.
Russian financiers before the opening of the trading session on the Moscow stock exchange expect to drop the indexes and the ruble. “Naturally the market will open lower by 7-10%, it will have banks, because the strongest Brexit impact on the banking system. Judging by the trading of the ruble on the Western platforms, the Russian currency may lose 4-5%: at yesterday’s close, the ruble was worth 63,8 RUB/USD. today could drop to 66.4 RUB/USD”, — says Manager Andrey Lifshitz. According to portfolio Manager of TKB investments UK partners Igor Kozak, the coming days will be volatile for the Russian market, primarily in Europe. “We are during the week, sold off assets just in case of such a scenario,” he said.
“It seems that today will be hot…”, — wrote in Facebook chief analyst of Management “Savings” Alexander Potavin. In his view, the MICEX index will probably open on Friday with gap down about 3-4%.
Before the opening of the markets of the Russian investors behave differently. “Send orders to the market to open to sell on the sly,” wrote one of them told . “Wait in US Tresuries legitimate, in my opinion 2% and then we will think, do I need this long (long position ) on. The rest of the market: “Well, hold on there,” said one financier shortly after it became known the preliminary results of the voting.
“Yesterday evening, many said that closing their long positions in all, as the market is overbought and grow nowhere else. And people obviously thought against output — only politicians and Newspapers, and the population (of British origin) is explicitly configured to “tie” with this “Euro-Soviet Union,” wrote the managing Director of Arbat Capital Alexey Golubovich.