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Looming ‘Brexit’ Vote Rattles Global Markets
Volatility rises across markets as polls show momentum growing in favor of Britain leaving the EU
The Wall Street Journal
by Riva Gold
6/13/2016
Excerpt:
The U.K.’s pending vote on European Union membership rattled global markets on Monday, sending stocks from Europe to Japan tumbling while pushing the yen and government bond prices to multiyear highs in a flight to safety.
Polls suggest that momentum is growing for a vote on June 23 for Britain to leave the EU, spurring concerns about a prolonged stretch of uncertainty that could damage economic growth and trigger losses in financial markets.
While Monday’s selloff spread around the globe, Europe is especially vulnerable. Britain has been among the best performing of the major European economies in recent years, and most economists believe a vote to leave the EU, dubbed “Brexit,” would hit investment hard—and possibly deliver a shock to consumption and growth overall.
Europe’s banks, meanwhile, are struggling to shake off a yearslong crisis and remain vulnerable to financial turmoil. Italian banks, for instance, are bedeviled by bad loans and will need sustained economic improvement to dig out from underneath them.
On Monday, the Stoxx Europe 600 index dropped 1.8%, wiping out all gains since February after weekend polls showed the race could be tighter than previously expected. Shares of European banks shed nearly 3%. Banks are affected by growth prospects but also by concerns that an exit could disrupt the operations of those that use London as a hub.
A telephone poll by ICM published Monday showed 50% of respondents supporting leaving, while 45% favored staying.
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View the complete article, including image and video, at:
http://www.wsj.com/articles/looming-...ets-1465846967
Volatility rises across markets as polls show momentum growing in favor of Britain leaving the EU
The Wall Street Journal
by Riva Gold
6/13/2016
Excerpt:
The U.K.’s pending vote on European Union membership rattled global markets on Monday, sending stocks from Europe to Japan tumbling while pushing the yen and government bond prices to multiyear highs in a flight to safety.
Polls suggest that momentum is growing for a vote on June 23 for Britain to leave the EU, spurring concerns about a prolonged stretch of uncertainty that could damage economic growth and trigger losses in financial markets.
While Monday’s selloff spread around the globe, Europe is especially vulnerable. Britain has been among the best performing of the major European economies in recent years, and most economists believe a vote to leave the EU, dubbed “Brexit,” would hit investment hard—and possibly deliver a shock to consumption and growth overall.
Europe’s banks, meanwhile, are struggling to shake off a yearslong crisis and remain vulnerable to financial turmoil. Italian banks, for instance, are bedeviled by bad loans and will need sustained economic improvement to dig out from underneath them.
On Monday, the Stoxx Europe 600 index dropped 1.8%, wiping out all gains since February after weekend polls showed the race could be tighter than previously expected. Shares of European banks shed nearly 3%. Banks are affected by growth prospects but also by concerns that an exit could disrupt the operations of those that use London as a hub.
A telephone poll by ICM published Monday showed 50% of respondents supporting leaving, while 45% favored staying.
.................................................. ..
View the complete article, including image and video, at:
http://www.wsj.com/articles/looming-...ets-1465846967