Asia Market News
In Asia, Japan’s Nikkei index rebounded on Monday as government officials stepped up warnings that they may intervene in currency markets to stabilise the yen after Britain voted to leave the European Union. The Nikkei rose 1.6% to 15,189.21 in midmorning trade, after falling 7.9 percent on Friday in the wake of Britain’s historic decision. Chinese stocks also gained, with the CSI 300 index and the Shanghai Composite both up about 0.8%.
Currency Market News
The GBP/USD continued to reflect the deeply bearish mood of investors after Britain opted to exit the European Union, triggering shockwaves across global markets. GBP/USD was down 2.3% at $1.3381, within shot of $1.3228 plumbed on Friday, its lowest since 1985. The USD/JPY continued to fall too, down 0.5% to 101.680 yen after falling 1.8% last week. The EUR/USD was down 1% at $1.0997.
Commodity Market News
Crude oil prices fell on Monday, extending sharp declines after Britain’s vote to leave the European Union sparked a sharp selloff in global markets on Friday. Brent crude futures were down 15 cents at $48.26 a barrel on Monday, after settling down 4.9%, at $48.41 on Friday. U.S. crude was down 25 cents at $47.39 a barrel, after closing down 4.9%, on Friday. Spot gold rose as much as 1.5% to $1,335.30 an ounce.
US Market News
In the US, the S&P 500 turned negative for the year-to-date on Friday as stocks suffered its largest selloff in 10 months after Britain’s decision to leave the European Union caught traders wrong-footed. The S&P 500 lost 3.6%, to 2,037.3. The CBOE Volatility index ended up 49% at 25.76, its highest level since Feb. 11.
Bond Market News
U.S. Treasury prices jumped on Friday on safe-haven buying as rattled investors evaluated the repercussions of Britain’s vote to leave the European Union, but bonds gave up some early gains in the U.S. trading session. The 10-year U.S. debt yield fell to 1.5020 percent. On Friday, it fell as low as 1.406 percent, near its record low of 1.381 percent marked in July 2012. The 30-year Japanese government bond yield fell to a record low on Monday as uncertainty following Britain’s decision to leave the European Union drove up demand for safe-haven debt. The 30-year yield was down 2 basis points at 0.110 percent, a historic low.
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