The Global Cycle Has Further To Run

News this past week:

Stock graph
• Oil prices rose 2% on the week with Brent at USD 53.9
• Gold rose 1.9 % to 1347, its third week of gains
• Risk appetite returns as treasuries retreat, stocks advance
• Apple set to launch the iPhone 8 and X models this week
• Hurricane Irma devastates the Caribbean and Florida

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Jewellery and Other Valuables: Are You Under-insured?

ferrari-dinoMany high net worth individuals (HNWIs) that have not had their jewellery and other valuables accurately priced since they bought them are in danger of becoming seriously under-insured. Over the past ten years, the price of gold, silver, diamonds and even investments such as fine wine has rocketed.
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Weekly Market Update

• Sterling vs USD lowest since 1985, whilst UK equities reach record highs
• US economy adds 156,000 jobs in September
• Dollar rises as expectations converge on December rate hike
• ECB rumours trigger rise in global bond yields
• In commodities, oil rises and gold falls

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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

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Relax, Brexit Will Be Nowhere Near As Bad As Lehman Brothers – Goldman Sachs

The UK has voted to quit the European Union after more than four decades in a stunning rejection of the continent’s postwar political and economic order, sending shock waves around global markets.

Sterling has plunged to the lowest since 1985, Asian stocks tumbled and US Treasuries surged in one of the most dramatic 24 hours in modern British history. Just after 0600, London time, as most votes were counted, the BBC said there was no way back for the pro-EU side, with voters having backed “Leave” by 52% to 48%.

Whilst the UK leaving the EU will have a strong negative on European equity markets, the impact will be nowhere near as bad as the fallout following the collapse of Lehman Brothers in 2008, according to Goldman Sachs.

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City Bets on Sterling to Suffer Bigger Plunge Than ‘Black Wednesday’ After Brexit Vote

Currency traders are betting that the pound will fall to record lows against the euro if Britain votes to leave the European Union, eclipsing the drops witnessed during the 2008 crash and the 1992 Black Wednesday crisis.

Brexit stresses are seeping into virtually every corner of the global foreign-exchange market.

Of 16 major currencies tracked by Bloomberg, all but three have seen a jump in the cost to hedge against big declines as Britain’s referendum on whether to stay in the European Union approaches. The pound posted the biggest increase, closely followed by its continental neighbors amid speculation a vote on Thursday to leave would encourage other countries to reconsider their own membership.

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The Best And Worst Performing Assets In May

May was a month of decoupling: oil decoupled from the dollar, and global risk decoupled from the once again sharply devaluing Yuan, but most notably May was a month where Fed rate hike expectations repriced midway through the month.

As Deutsche Bank’s Managing Director, Global Head of the Fundamental Credit Strategy Group, and Strategist,  Jim Reid  points out, markets largely took the move in their stride and reversed a difficult start to the month. Having said that we saw evidence of the repricing with dollar strength and Emerging Markets/Gold weakness a theme.

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