Sterling gold has risen another 3.5% in the last 3 trading days as the British pound continues to be “pounded” on international markets. Sterling is now the worst major performing currency in 2016 and gold the best.
While the entire nation was transfixed on last night's latest, and most scandalous yet "debate", in which there was little actual debating and a lot of talking points and character assassination attempts, index futures were little changed throughout Sunday's 90 minutes event, suggesting that no clear winner had emerged on either side.
Sterling gold rose 1.3% today as sterling slumped again after the UK set a March deadline to start their 'Brexit divorce' proceedings from the European Union and on deepening nervousness regarding a 'Hard Brexit'.
With China, German and South Korea closed for holiday, it has been a relatively quiet day in overnight equity trading, especially in the one stock everyone is keeping a close eye on, Deutsche Bank, whose ADRs are trading fractionally lower, down under 1% in premarket trading. Cable plunged on "Hard Brexit" fears sending the FTSE100 to fresh 16 month highs.
For the first half of the year, we were warned early and often by authorities that the Brexit vote could be a calamity for the ages. For example, the IMF claimed that a “Leave” result would threaten to “cause severe damage”, while Standard and Poor’s said that it would “paralyze” investment in the UK. But, as Visual Capitalist's Jeff Desjardins notes, it turns out that the real Brexit casualty isn’t the UK economy – instead it is the reputation of the many professional economists who wrongly predicted doom and gloom as the likely aftermath.
Stocks across the board, and US equity futures are broadly in the green this morning as markets shrug off the terror-related events in the NYC area over the weekend. There wasn’t a single positive “reason” for the green price action but fears about the bond “tantrum” appear to be fading while a stronger dollar helped push oil and the commodity complex higher.