Research_strapline

Are you an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Register for FundCalibre!

We just need to know
if you are an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Weekly market review

Week ending 24 June 2016


Stocks

Global equities sharply sold off following the UK’s referendum vote to leave the European Union (EU), a surprise result which bucked signals from betting markets and polling data earlier in the week. As a result, the UK stock market dived on Friday, although it subsequently recovered to end the week at a modest fall, closing at 6,170. Investors fled from risk assets, with the US stock market and the Euro Stoxx 600 index falling 1.6% and 1.1% respectively. The largest decliners in the indices were concentrated in the financials sector, as UK-based banks and their investors evaluated how the vote will change their business.

View Elite Rated equity funds


Fixed Income

US Treasury and high-quality sovereign debt yields tumbled as investors shunned risk assets. The US 10-Year Treasury yield hovered near 4-year lows, closing at 1.6%. The UK 10-Year government bond yield hit an all-time low of 1.02%, while yields on the Continent also moved lower, guided by a negative 10-Year German Bund yield of –0.05%.

View Elite Rated bond funds



Currencies

Safe-haven currencies soared following the referendum vote, with the US dollar up 1.1% and the Japanese yen hitting ¥99.2, ultimately finishing 2.5% stronger over the week. Following significant appreciation leading into the vote, the British pound closed down 5.5% on the week. Further strengthening in risk-off currencies has fuelled speculation around currency intervention, with the Swiss National Bank intervening on Friday to stem upward pressures.



Commodities

West Texas Intermediate crude oil followed the sell-off of other risk assets and stronger dollar, dropping to $47.64/barrel. Heightened geopolitical changes have increased uncertainty of future oil demand.

View our Elite Rated gold fund - BlackRock Gold & General



Source: Goldman Sachs Asset Management. Adapted by FundCalibre. This material is for information purposes only and does not in any way constitute financial advice.


Sign up to receive our free weekly newsletter.