Article / 24 June 2016 at 2:09 GMT

Morning Report APAC: Global assets pounded as GBP plummets

APAC Sales Trading Desk / Saxo Capital Markets


  • GBP sinks the most since 2008 as key districts support Leave campaign
  • GBP slid 5.1% to $1.4112 as at 0218 GMT after earlier rising to as high as $1.5018
  • Futures on the FTSE 100 moving rapidly lower as are those on the S&P 500
  • Stockmarkets from Japan to Taiwan tumble in early trading 
  • JPY rallying more than 2% as gold jumped with government debt 
  • Our Brexit pages will keep you up to date with the latest developments

By Saxo APAC Sales Trading

Economic data of the day (Singapore Time)

-    09:00am: PHP – Imports YoY (Exp. 20.0%, Prev. 11.7%), Trade Balance (Exp. -$1883 Mio, Prev. -$1747 Mio)
-    02.45pm: EUR – France GDP YoY Q1 (Exp. 1.4%, Prev. 1.4%), QoQ (Exp. 0.6%, Prev. 0.6%)
-    04:00pm: EUR – Germany IFO Business Climate (Exp. 107.4, Prev. 107.7)
-    04:00pm: EUR – Germany IFO Current Assessment (Exp. 114.0, Prev. 114.2)
-    04:00pm: EUR – Germany IFO Expectations (Exp. 101.2, Prev. 101.6)
-    08.30pm: USD – Durable goods Orders (Exp. -0.5%, Prev. 3.4%), Ex Transportation (Exp. 0.1%, Prev. 0.5%)
-    10.00pm: USD – Univ. of Michigan (Exp. 94.1, Prev. 94.3)


-    07.00am: USD – Fed Bank of Dallas President Kaplan Speaks in New York
-    07.50am: JPY – Bank of Japan June meeting summary of opinions
-    11.00pm: CNY - People’s Bank of China Governor Xiaochuan Speaks at IMF

Overnight news

  • Brexit: Results start coming in and expect a crazy day ahead. As we are writing now, results are very mixed with 38 areas reported: 46.2% Remain, 53.8% Leave.



Foreign exchange



Very volatile morning in FX this morning with major risk off as The Leave camp is leading.

Foreign exchange movements

All the volatilities got paid with the big move in GBP spot from 1.50 to 1.43 back to 1.46 and down again. The volume seen in vols is very small.


Risk off in rates with US rates down 13 basis points. Expect the Bunds to trade much lower at the open and back below 0%.






US stocks soared and the S&P 500 reclaimed 2,100 as investors grew increasingly confident that the UK will vote to remain in the European Union but this might change today after the first results. It was the same scenario for European stocks.

Tesco climbed 0.8% after the supermarket reported 0.9% growth in Q1 like-for-like sales.  Underlying sales growth in the UK grew for a second consecutive quarter, the first back-to-back quarterly gain in more than five years.

UK like-for-like sales edged up 0.3% (volumes +2.2%, transactions +1.7%) and international like-for-like sales rose 3.0% (volumes +2.7%, transactions +1.5%). Tesco CEO Dave Lewis said, “We have delivered a second quarter of positive like-for-like sales growth across all parts of the group in what remains a challenging market with sustained deflation.”
So volatile: in early Asian trading, the GBP slumped 3.8% against the EUR as
the AUD and other commodity-linked currencies also tumbled. Photo: iStock

– Edited by Adam Courtenay

This report was compiled by the Saxo APAC Sales trading team in Singapore – the home of social trading. Follow the team on @SaxoStrats or post your comment below to engage with Saxo Bank's social trading platform. Follow us on @SaxoStrats on Twitter

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