We begin by revisiting the situation in the UK, starting with some market developments.
1. The British pound took another hit Monday morning, reaching a multi-decade low. The currency was recovering slightly as of early Tuesday morning. We are in uncharted territory.
To put this dislocation in perspective here is Friday’s GBP move compared to other markets.
2. The FTSE 250 index, which has less international exposure than the FTSE 100 (and thus more exposed to the UK economy), got smoked.
3. We saw a spectacular selloff in Barclays Bank shares – 2 days in a row of 17%+ declines. RBS shares didn’t do much better. Some view this as a buying opportunity.
4. The 10yr gilts yield hit a record low falling below 1% for the first time.
Next, let’s take a look at a few headlines.
1. Central bankers are nervous.
2. Scotland’s leadership is rather upset with the EU Referendum outcome.NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas; or the free eLetter for an introduction to our work. You can also keep up to date with plenty of actionable public content at NFTRH.com. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.