Article / 27 June 2016 at 6:59 GMT

Morning Markets: Post-vote trauma rolls on

Deputy Editor /




  • Eurozone: Money Supply (0800 GMT)
  • US: Services PMI (1345 GMT)

Uncertainty rules in this traumatised post-Brexit world, as markets reeling from the impact of last week's shock vote try to find new assumptions for pricing equities, commodities and currencies. Friday's impact on the markets was massive: global equity markets lost $2.8 trillion on the shock UK vote. Trading in Asia was mixed today, suggesting confusion over what the post-Brexit world will look like. Shares rallied in Tokyo, but were still well below pre-Brexit levels.

Sterling traded sharply lower in the Asian session and there is as yet no indicitation of where and when that trajectory might reverse. UK stocks and European stocks are likewise expected to open in negative territory.

In the UK itself the magnitude of the exit decision continues to reverberate through the political world. The prime minister signalled his impending resignation already on Friday and this morning the chancellor of the exchequer (finance minister) said he would clarify his role in government shortly. Meanwhile, the leader of the the opposition Labour party is fighting for his political career afer a large number of his fellow MPs ressigned their shadow cabinet positions in an attempt to oust him. 

The signals appearing internationally are decidedly mixed with International Monetary Fund chief Christine Lagarde urging "quick action" on Brexit and Angela Merkel, the German chancellor, calling for a more temperate approach.

Market signals

Asian session

  • Gold soared to a two-year high on risk-on sentiment
  • Global equity markets lost $2.8 trillion on Friday after Britain voted to leave the EU
  • That stunning loss beat the 2008 and 1987 crashes: S&P
  • Sterling added to Friday’s drop and UK stock index futures tumbled more than 3%
  • The pound slipped another 2% to $1.3403 in early Asian trading
  • The Norwegian krone led losses among the "oil" currencies, down 2.8% in Asian trade
  • Bourses in Milan and Madrid had their worst-ever losses, down 12% plus
  • China devalued the yuan the most in 10 months
  • West Texas Intermediate crude fell 0.6% to $47.37/barrel
  • Shares rose in a relief rally in Tokyo, but were still well below pre-Brexit levels
  • The Nikkei 225 was up 2.29% at 0518 GMT at 15,294.65
  • The Hang Seng was down 0.52% and the Shanghai Composite was up 1.15%
  • New Zealand consumer goods imports were up $NZ152 million in May
  • After a rocky start the S&P/ASX200 was up 21 points or 0.41% at 0549 GMT

Forex ahead

  • Forex traders see last Friday as the greatest single day of market mayhem ever
  • GBP regained some ground after hitting a 30-year low; it was worth 1.3440 at 0010 GMT
  • The US dollar was worth just ¥102.3350 at 0008 GMT
  • The Australian dollar was worth 0.7434 at 0010 GMT

From the Floor

Gaps narrowing. "We see the magnitude of the move dropping dramatically," says Hardy .

Post-Brexit blues. "Expect elevated volatility over the coming days," says Garnry .

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

The UK vote will embolden populists into trying repeat the results in France, Germany and elsewhere. So fasten your seatbelts for a bumpy ride, says James Picerno

FX risk lesson
Last Friday, the greatest single day of forex market mayhem ever seen, shows that FX trading is a long game where risk/money management is absolutely critical, says Max McKegg

nnn Avenue of broken dreams ... the Union Jack flutters alongside other EU member nation flags outside the European Parliament in Brussels, for now. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail