Tuesday, June 28, 2016

Brexit, the bouncing bags after burning 4 trillion – The Republic

MILAN – The pound raises – timidly – the head and the markets feel the rebound after the collapse began on Friday morning with the verdict of the British referendum that determined the Brexit victory and the start of the procedures for ‘ output of Britain: since then the global stock exchanges sacrificed almost four billion dollars. Milan , the most affected in these days of strong sales, driving the recovery today with a + 3.5%, driven by banks that in recent sessions have lost nearly a third of the value. The government is working on possible support measures for the industry and the EU Commission Vice-President, Valdis Dombrovskis, confirmed: “We are monitoring the situation closely and we are in close contact with the Italian authorities about possible steps” coupled, even if “there are different ways of possible actions that are still under discussion and for that I can not add details at this time.” well the other Bags: London rose by 2.4%, Paris 2.5% and Frankfurt 2%.

In short, to dominate in the operating rooms is always the great uncertainty about the future of economic relations between London and Brussels with great fear it brings. After the panic, though, the experts look to the replies of the institutions that have been set in motion to minimize the economic damage. In Sintra, in Portgallo, is underway the annual symposium of the European Central Bank , from which the governor Mario Draghi called for an alignment of monetary policies to support the fight against inflation low. Arrived last night in Portugal, the ECB president said he was “disappointed” with the outcome of the referendum after repeating that the ” Eurotower is capable of anything “to prevent new speculative attacks on the euro.

Frankfurt action is evident in the bond market and the government bond: despite enormous pressure movements are minimal. Today the spread between BTP and Bund area is 155 basis points, with Italian titles that make the 1.45% just over the rate recorded on the eve of the British referendum. Continues, however, the race to the bottom of the German Bund, elected new safe haven along with gold and the dollar. The Treasury has meanwhile placed all 6 billion of six-month Bot today at auction, in the face of questions to 9.468 billion euro. The yield, however, rose to 0.150% -0.262% from last month.

Investors, now, expect new expansionary measures by the central banks: according to the Fed funds futures – used to predict moves by the Federal Reserve – is only 9% chance that Janet Yellen increases the cost of money before next year, while according to another 20% rates could even go down. Before Brexit the chances of a cut was zero and the rise within the year was given to 52%. Certainly the attention of the markets will be focused in Brussels, where the agenda is the European Council for the first time, in fact, the Heads of State and Government will see the prime minister resigning of malicious David Cameron. Pending discussions between leaders, the EU President Jean Claude Juncker, has made it clear that awaits the official position of London and only then start the formal negotiations.

After the race the last days, the ‘ gold is down and yields 0.6% to $ 1,316.32 after having risen by 5.4%: the highest rise since January 2009. As said, the Brexit effect is still felt in the market for changes. L ‘ is quora above $ 1.10, but the pound goes after new low for 31 years. The European currency rose to $ 1.107 and 113 yen, while the English one is at 1.3328 after touching 1.3121.

From a macroeconomic point of view is slightly down in June household confidence French. The indicator that the measure, announced today the Insee institute, fell to 97 points below the long-term average of 100 points. It has affected the result of a renewed wave of pessimism on the standard of living expected by families across the Alps. Even in Italy there is the loss of enamel expectations for consumers and businesses, waiting for the like as also coming from the US where you look at the final reading of the first quarter GDP and the index of house prices.

in the morning, the Tokyo Stock Exchange closed shortly move: the Nikkei index advancing 0.09% to 15,323.14 points, while the Wall Street last night opened the week again under pressure: the Dow Jones has sold its 1.5% to 17,140 points and the Standard & amp; Poor’s 500 index 1.81% at 2000, ending both its lowest level since mid-March, while the Nasdaq slipped 2.41% to 4,594, the lowest level since late February. The oil is on the rise this morning on the international markets in view of a likely drop in US stocks (the official figure will be released tomorrow). After the fall of 7.5% charged in the past two days, the WTI crude oil today earns 1.8% to $ 47.18 a barrel. Brent also rose which appreciated by 1.6% to $ 47.93 per barrel.

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