Soros Comes Out Swinging

Good Morning,

George Soros, the “genius” behind the 1992 “collapse of England”, came out swinging last night stating that a “Brexit” would be catastrophic for markets and that the GBP would be 1:1 vs. the EUR…

A method of 'joining the euro' that nobody in Britain would want," he added.

Markets are starting to factor in a “No Exit”, as the GBP is at the highest levels since the EU vote was set and global markets rally….

So right now, the GBP and markets are telling you that the likelihood of an exit is small….

Last night in the US, markets were fairly “stable” with the Dow +24 points, while Oil closed lower…

“The market was off last week for a few sessions and now it’s been doing a little bounce-back,” Stephen Carl, principal and head equity trader at Williams Capital Group LP, said by phone.

“The market stayed pretty buoyant yesterday and the Brexit scenario has been more or less 50-50 for quite some time, so if nothing comes out of it then that helps as well.”

In our trading session, it was the banks that helped the index rise +24 points…

However, all eyes will be on Friday’s morning vote, which will shape the direction of global markets in July…

The SPI is up 3 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.