Weekly Market Update

News this past week

  • UK votes to leave the European Union; sterling depreciates
  • Political backlash from referendum result
  • Pessimism in global equity markets following UK vote
  • Fresh record lows for government bond yields
  • Flight to safe-haven assets sees gold rally

James Klempster, CFA of Momentum Global Investment Management shares his view:

Today, the UK (and Europe) can be forgiven a brief period of soul searching, but protracted self-pity is not in anyone’s interest.  Ultimately the public have spoken and regardless of one’s view of the result it is incumbent upon everyone in Europe – businesses, politicians and consumers alike – to do their utmost to make the best of it.  Business’ natural inclination is to do just that – management is paid by shareholders to make money in all environments – but while there is such great uncertainty over the region it is understandable that businesses may sit on their hands.  Doing so raises the spectre of a recession both in the UK and on the continent and as a result we would do well to see the politics settled as soon as possible.

To read the full update please click here


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