At 8:50 a.m. ET futures are significantly lower and the price of oil per barrel is down. The market is poised to open significantly lower.
Unfortunately, Britain voted to leave the E.U. last Thursday. The fallout from this calamitous and poorly conceived decision continues today. On Friday the DOW dropped over 600 points instantly slicing off nearly $1 Trillion in equities value in the US alone. That would translate to every single US citizen, including newborns, being roughly $3,000 poorer. Today's losses will probably not be as great maybe more like $500 for every single US citizen. Any politician who is applauding this Brexit vote, has virtually no understanding of global markets, that can be said with 100% certainty.
CNN: U.S. stocks: Uncertainty after Brexit by Rich Barbieri
The pound, which on Friday crashed to a three-decade low, fell another 3.6% on Monday. Oil dropped on Friday, but it bounced back slightly.
2 comments:
The Brexit drama is far from over. There is likely going to be a general election in the UK sooner then later and a "New" Gov't and parliament. This "new" Gov't is not obligated by Brit. tradition to follow through on the exit if it doesn't want to. Of course that's highly unlikely to happen, however these are extraordinary circumstances. If the U.K. itself starts to come apart because of this vote that might also have an effect on the decision to go. Scotland and Northern Ireland are both considering their own exits.
Yes, right now it's about trying to pick up the pieces and trying to make sense out of them.
Post a Comment