The carnage continues today as aftershocks from the U.K.’s vote to leave the European union reverberate across financial markets.
Ultimately, what the Brexit vote did was inject a huge amount of uncertainty and confusion into the markets. Investors hate uncertainty, and their natural reaction is to hit the sell button.
Markets in Europe fell between 3 and 4 percent, but that trend was bucked by most equity markets in Asia. China's Shanghai Composite gained 1.45% and Japan's Nikkei did better, up 2.4%.
Here in the U.S., the selling continued with the Industrials falling 260 points. The Transports lost an alarming 3.1%, while the broader S&P 500 was down 1.81%. Treasuries and gold both rallied, benefiting from the exodus out of stocks. The yield on the 10-year Treasury fell to 1.45% and gold gained $5/ounce to close at 1324.
Bond Mechanics in a Negative Interest Rate World
By Matthew Kerkhoff
We’re going to talk about bonds today but before we ... Log in or subscribe to continue reading.