Market Talk – June 20th, 2016

by Martin Armstrong
Armstrong Economics

The weekend BREXIT poll shaped markets as soon as Asia opened today. The GBP bounced 1% from the open while global equity markets followed with DAX, CAC, Nikkei, Shanghai all over 2% better than the Friday close. Treasuries and Gold saw profit-taking as we saw a 1% decline from the opening bell. Japan did release Im/Export figures prior to the market open but despite the disappointing Export number (-10.4% estimated the release was -11.3%) – Imports were as forecast -13.8% and so we were back to focusing on Thursdays BREXIT vote in the UK. By the close of business all core markets were positive with the major gains seen in the Nikkei (+2.3%), HSI (+1.7%) and the ASX returning +1.8% on the day.Europe followed Asia’s lead with futures opening 2.5% better from the Friday close. All core indices produced around 3.25% returns for the day in anticipation that the UK remains within Europe, come the vote on Thursday. We saw impressive performances across the board from banks, retailers and construction companies to Insurance and travel all in anticipation of a “remain” vote. Many quote that so much has been priced-in is there anything left? Buy the rumor sell the news has always served well in the past!

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