Good Morning,
Merkel didn’t wake up too happy this morning…
Neither did George Soros, the billionaire investor who made his fortune in 1992 taking down the Bank of England, who was “long” the GBP….
Another “turbulent” night last night in the US, with the Dow -250 and Gold +$USD 7.2
Interestingly, the VIX (Volatility Index), fell by around 6% overnight, which is a good sign…
What we are seeing now is “uncertainty” and this will lead to further weakness in the short-term…..
So be prepared and look for buying opportunities, only when the “dust settles” over coming weeks……..
Right now, there is no point in panicking or trying to take aggressive long/short positions as just like in August 2015, things will get very choppy…..
In Europe, Ratings agency Standard & Poor's stripped Britain of its last remaining top-notch credit rating on Monday, slashing it by two notches from AAA and warning more downgrades could follow after Britons voted to leave the European Union last week.
The Stoxx Europe 600 Index slid 4.1 per cent following a 7 per cent rout Friday. The FTSE 100 lost 2.6 per cent. The Stoxx 600 Banks Index, which included European companies involved in banking, fell 7.6 per cent after dropping 14 per cent on Friday. The volume of European shares changing hands today was almost three times the 30-day average.
What's on today?
ANZ weekly consumer confidence, Overseas data: US consumer confidence (June), European Council summit
The SPI is down 56 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.
