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Is It The Beginning Of The End?

The global financial markets have been shocked and rattled resulting from EU referendum results favoring Britain’s “BREXIT.”

While the whole world pleads and speculated the UK to remain in the EU, the Britons had something else in mind.

The bad news continues to roll in, and markets across the globe are forced to adjust as uncertainty continues to grow. In an interview with the press, Prime Minister David Cameron announced he would resign, and Britain would need to find a new captain to lead the nation.

The whole world is trying to gauge the damage done, but it is far too early to predict how things will turn out for the UK. One thing is for sure: Britain will be feeling the effect of their decision for years to come.

Following the UK referendum, other nations are beginning to pursue a similar path. Scotland has been clamoring for its independence, while Republicans called for a referendum on Irish unification. According to a paper from the German finance ministry, France, the Netherlands, Austria, Finland, and Hungary could all follow Britain out of the EU considering a series of anti-Brussels rebellions.

Hodor…Hodor

As it is still too early to forecast predictions on who will stay in the EU and who will not, Britain’s move may just be the catalyst for referendums to come and has prompted a new conversation on sovereign nation-state independence. Only time will tell when these events will occur.

Most of the news channels are focusing on the European market, but the Asian market is showing signs of distress as well.

     
Asia
Nikkei 225 (Jun 24) 14952.02 -1286.33
Straits Times (Jun 24) 2734.97 -58.88
Hang Seng (Jun 24) 20259.13 -609.21
Taiwan Index (Jun 24) 8476.99 -199.69
KOSPI (Jun 24) 1925.24 -61.47
Shanghai Composite (Jun 24) 2853.63 -38.33

Indian markets printed a low. NIFTY is down 220 points, and SENSEX is down 700 points when this article was written. In a recent press interview, RBI Governor Raghuram Rajan promised liquidity to absorb the shock on the currency market.

Chasing the gold: As the uncertainty across markets persists, the hunt for Gold has begun. Gold rallied from 1250 to 1358 favoring strength for upward-trending direction.

No matter what the future holds for the UK, it is evident that The European Union has to hold the door for other nations to help prevent a domino type effect and potentially other greater disaster for the EU.

Ashutosh Gedamkar

Account Manager India
agedamkar@tvmarkets.com

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