Friday, June 24, 2016
ITR Economics Update
BREXITImmediate reaction: The UK voted by 17.4 million to 16.1 million to leave the EU. By noon Eastern Time, the S&P 500 was down approximately 2.7% with the loss occurring at the opening bell. The global markets are generally down more severely. The Global Dow is down approximately 5.0%. Sweden, Finland, and Estonia are up. We mentioned that financial turmoil would occur if the UK voted to leave. It is happening. We are carefully monitoring movements in the foreign exchange and bond markets. However, we will need more data beyond what is available in these financial indicators to confirm the actual impact of this vote on our long-term outlook.
Next step: The UK needs to determine when to trigger Article 50 and begin the formal process of withdrawing from the EU. The process is supposed to take a couple of years from start to finish. Having never seen this process before, one can only speculate about the legal and economic drama this process will create. (…)
via ITR Economics Bulletin: BREXIT – NFDA – National Fastener Distributors Association.