BREXIT UPDATE: GOLD GAINS, STERLING SINKS, and EQUITIES IMPLODE

Politics

 

UPDATED  12:03 AM ET - Soren K.

Markets

  • Equities
    • SPUs dn 3.5%  trading 2031
    • FTSE dn7.44 % trading 5818
  • Precious Metals
    • Spot Gold up $98  trading 1355 for a 7.8% gain !!
    • Silver Spot up 74 cents trading 18.03
  • Currencies
    • GBP trading 1.34 dn 1463 off 10% !!
    • Euro trading 1.09 dn 4.09%

What to Expect Tomorrow if Leave does happen?

  1. Barclays and other banks believe the Bank of England will cut rates from 0.5% to zero if a Brexit happens. Additionally, a new round of Quantitative Easing will follow.
  2.  We think that regardless of the referendum vote, the BOE will have to lower rates and break out the QE again.
  3. Watch for Bank Holidays or other stop the madness activity.
  4. The US Fed will once again make Dollars freely available in a swap program to inject liquidity
  5. More EU countries will be encourage to flex their nationalist muscles. Some ourt of genuine fear of a "decaying EU". Others as an attempt to Greenmail better terms under threat of exiting. Think "Frexit", and" ITALeave" as next in line
  6. There is no six... but there will be tomorrow we bet!

-Soren K.

 

 

 

As of 9:48 ET

 

MARKETS

  • Gold is trading1268 in volatile trading with a high of 1286
  • GBP is trading down 5%
  • FTSE is trading Down 5%
  • SPUs are trading down 24 handles

RECAP

  1. The first section of the UK to have its votes counted is the Sunderland Section.
  2. This area was expected to come in as a LEAVE win due to its demographics.

  3. The tallys are approximately:LEAVE 82k, REMAIN 52K

  4. This blew away estimates. And started the panic- GBP dn 2%, FTSE dn 2% Gold up $6

  5. As more Northeastern area votes were counted- the GBP capitulated more

  6. the most recent prices are reflected above

  7. Gold is firm but choppy, while the GBP has bounced like a dead cat with an anvil around its neck

  8. THE CITY OF LONDON HAS MORE VOTERS THAN ALL OTHER REGIONS COMBINED and WILL VOTE REMAIN

  9. about 2MM votes counted with 30MM to go. This is far from over.

  10. Do not forget that Central Banks are ready to inject liquidity as we stated HERE

 

From here it is anyone's guess. But the lesson from today is: Do not take off your hedges until the votes are counted. AS we said earlier today

 " Why anyone would take hedges off PRE-news is crazy, but it is what it is (greed)."

 

This thing is far from over, keep your powder dry.

 

 

Good Night and Good Luck

 

- Soren K.

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