Market Matters Afternoon Report Friday 24th June 2016

Afternoon Report 24/06/2016

Market Matters Afternoon Report Friday 24th June 2016

Good Afternoon everyone

Market Data

What Mattered Today

The ‘BREXIT’ is now a reality with Britain voting to leave the EU which – understandably has sent stock markets sharply lower, and prompted a rush of money into safe haven assets – like Gold and Govt Bonds. Optimism was high in the U.S session last night ahead of the vote which prompted a +60pt move in our Futures market early. The market ebbed and flowed throughout the morning in a huge range – before clearer indications started to emerge around midday that saw the leave camp all but confirmed….Stocks continued to fall into the afternoon.

A massive range today of +/-245pts. 5080 low, 5325 high and a close at 5113; down -167pts or -3.17%. There was a GFC-style vibe to the market today with HUGE volume of more than $10bn – a huge range, indiscriminate RISK OFF trading . Today’s shellacking was the 9th biggest fall in the last 6 years and we’re now seeing some very BIG moves in overseas futures markets – as we’ll cover below.

Pretty clear that the market was believing the Bookies rather than the polls and didn’t give a lot of weight to the BREXIT actually happening. We were of the opinion the STAY vote would get up and the BRITS would refrain from lobbing a grenade into global financial markets at a time when economies are dragging themselves out of the GFC hangover.

The pound traded to a 38 year low v the USD today after selling off more than 10% in the session...Gold was up +$65 to $1328, US 10 year bond yields traded to 1.49%, US e-minis (FUTURES) triggered a circuit breaker which halted trading…. massive moves with the unpredicted outcome clearly unsettling the status quo.

The question clearly becomes, what financial impact will the BREXIT have, and importantly how will central banks react…? Remember, this is more a political episode than an economic one for now – however history does show than political events can (and often do) turn into financial events over time. Watch for Central Bank action/rhetoric over the weekend.

For Market Matters Subscribers we will cover our views on the prevailing situation, the impact on our portfolio (& yours), and how we’ll be managing our exposure in the short term – in the WEEKEND REPORT – which will be in your inbox by midday Sunday.

Sectors Today

Source; Bloomberg

ASX 200 Movers

What Matters Overseas

UK PM David Cameron has just resigned and the UK market is off more than 6%..FUTURES globally are getting HIT hard however remember - our market has seen this today. Overseas markets will need to be down more than the figures below for it to impact the Aussie Market on Monday. A lot can happen over the weekend.

Have a great weekend and keep an eye for our report on Sunday…

Regards,

The Market Matters Team
Level 12 28-34 O'Connell St
Sydney, NSW 2000.

All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 24/06/2016. 9:00AM.

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