Financial Markets Take a Tumble after Brexit Vote

[JOE]

http://www.theglobeandmail.com/report-on-business/top-business-stories/brexit-vote-sparks-bloodbath-across-global-markets-stocks-currencies-plunge-central-banks-on-alert/article30604536/?service=mobile">http://www.theglobeandmail.com/report-o ... ice=mobile">http://www.theglobeandmail.com/report-on-business/top-business-stories/brexit-vote-sparks-bloodbath-across-global-markets-stocks-currencies-plunge-central-banks-on-alert/article30604536/?service=mobile



...the pound down, loonie down, shocks through the oil sector, Nikkei down, North American markets prepared for the worst...



...but some good buying opportunities.



Any suggestions, seoulbro?

[JOE]

....more on the financial/economic fallout:



http://www.theglobeandmail.com/globe-investor/for-investors-the-lexicon-of-fear-now-includes-brexit/article30604244/?service=mobile">http://www.theglobeandmail.com/globe-in ... ice=mobile">http://www.theglobeandmail.com/globe-investor/for-investors-the-lexicon-of-fear-now-includes-brexit/article30604244/?service=mobile

[smell the glove]

As an investor, I am not worried...  I am long term.  Markets will easily recover in time.

[Anonymous]

As an investor, I am not worried...  I am long term.  Markets will easily recover in time.

I hope this will only be short term.

[RW]

It will be short term.

[Anonymous]

It will be short term.

That is correct. We are seeing a knee jerk reaction right now. The markets expected the remain side would prevail.

[RW]

It will be short term.

That is correct. We are seeing a knee jerk reaction right now. The markets expected the remain side would prevail.

What are the consequences of these knee jerk reactions?  Anything?

[Anonymous]

It will be short term.

That is correct. We are seeing a knee jerk reaction right now. The markets expected the remain side would prevail.

What are the consequences of these knee jerk reactions?  Anything?

The pound closed with it's worst showing in over thirty years. The Canadian dollar was down one and a half cents before North American markets opened today. The FTSE 100 was down nearly 9 per cent at one point.

[RW]

It will be short term.

That is correct. We are seeing a knee jerk reaction right now. The markets expected the remain side would prevail.

What are the consequences of these knee jerk reactions?  Anything?

The pound closed with it's worst showing in over thirty years. The Canadian dollar was down one and a half cents before North American markets opened today. The FTSE 100 was down nearly 9 per cent at one point.

That's the showing of the reaction but they are generally short term.  My understanding is investors then see these dives as an opportunity to make a quick buck and throw money back into the markets and they bounce back rather quickly.  I'm just wondering what "real life" effects these blips have.

[Anonymous]

It will be short term.

That is correct. We are seeing a knee jerk reaction right now. The markets expected the remain side would prevail.

What are the consequences of these knee jerk reactions?  Anything?

The pound closed with it's worst showing in over thirty years. The Canadian dollar was down one and a half cents before North American markets opened today. The FTSE 100 was down nearly 9 per cent at one point.

That's the showing of the reaction but they are generally short term.  My understanding is investors then see these dives as an opportunity to make a quick buck and throw money back into the markets and they bounce back rather quickly.  I'm just wondering what "real life" effects these blips have.

Oh, I hope all this is short term.

[Anonymous]

That's the showing of the reaction but they are generally short term.  My understanding is investors then see these dives as an opportunity to make a quick buck and throw money back into the markets and they bounce back rather quickly.  I'm just wondering what "real life" effects these blips have.

This will not be good for Canada's growth prospects.



http://www.msn.com/en-ca/money/topstories/brexit-could-hit-canada-hard-td-bank-warns/ar-AAhA72B?li=AAggNb9&ocid=mailsignout">http://www.msn.com/en-ca/money/topstori ... ailsignout">http://www.msn.com/en-ca/money/topstories/brexit-could-hit-canada-hard-td-bank-warns/ar-AAhA72B?li=AAggNb9&ocid=mailsignout

Canada risks losing a significant part of its economic growth this year as a result of the Brexit vote, TD Bank warned Friday. Investors are engaging in a "flight to safety" -- abandoning riskier investments in favour of safe harbours like the U.S. dollar.



For Canada, the result could be a considerably weaker economy for the rest of this year than previously estimated, TD Bank said in a client note Friday morning.



"We estimate that confidence and financial spillovers from a leave result could shave about 0.5 to 1.0 percentage point off GDP growth for the U.S. and Canada in the second half of 2016," economists Beata Caranci and Fotios Raptis wrote.



Given that current forecasts see about 1.2 per cent to 1.5 per cent growth for Canada this year, Brexit could end cutting economic growth by as much as half.



Related: Track global market moves using MSN Money's Markets page



It's not because Canada is heavily dependent on trade with Britain; only about 3 per cent of Canadian trade is with the island nation. But uncertainty in the markets will cause business investment to drop, including in Canada, TD Bank said.



Canada's situation could be even worse if the Brexit vote leads to a prolonged commodity price slump, TD warned.



But that could be good news for Canada's indebted mortgage holders, who may have been given a respite from rising interest rates thanks to Brexit.



"A more prolonged slump would likely delay any plans by the Bank of Canada to increase its interest rate target," TD said, noting the same is true of U.S. interest rates.



"The Canadian regions most likely to feel the brunt of reduced U.K. demand are Newfoundland & Labrador, which ships about 8 per cent of its total annual goods exports to the U.K., and Ontario, which sends about 6 per cent of its annual goods exports to the U.K.," TD Bank wrote.

[Anonymous]

That's the showing of the reaction but they are generally short term.  My understanding is investors then see these dives as an opportunity to make a quick buck and throw money back into the markets and they bounce back rather quickly.  I'm just wondering what "real life" effects these blips have.

This will not be good for Canada's growth prospects.



http://www.msn.com/en-ca/money/topstories/brexit-could-hit-canada-hard-td-bank-warns/ar-AAhA72B?li=AAggNb9&ocid=mailsignout">http://www.msn.com/en-ca/money/topstori ... ailsignout">http://www.msn.com/en-ca/money/topstories/brexit-could-hit-canada-hard-td-bank-warns/ar-AAhA72B?li=AAggNb9&ocid=mailsignout

Canada risks losing a significant part of its economic growth this year as a result of the Brexit vote, TD Bank warned Friday. Investors are engaging in a "flight to safety" -- abandoning riskier investments in favour of safe harbours like the U.S. dollar.



For Canada, the result could be a considerably weaker economy for the rest of this year than previously estimated, TD Bank said in a client note Friday morning.



"We estimate that confidence and financial spillovers from a leave result could shave about 0.5 to 1.0 percentage point off GDP growth for the U.S. and Canada in the second half of 2016," economists Beata Caranci and Fotios Raptis wrote.



Given that current forecasts see about 1.2 per cent to 1.5 per cent growth for Canada this year, Brexit could end cutting economic growth by as much as half.



Related: Track global market moves using MSN Money's Markets page



It's not because Canada is heavily dependent on trade with Britain; only about 3 per cent of Canadian trade is with the island nation. But uncertainty in the markets will cause business investment to drop, including in Canada, TD Bank said.



Canada's situation could be even worse if the Brexit vote leads to a prolonged commodity price slump, TD warned.



But that could be good news for Canada's indebted mortgage holders, who may have been given a respite from rising interest rates thanks to Brexit.



"A more prolonged slump would likely delay any plans by the Bank of Canada to increase its interest rate target," TD said, noting the same is true of U.S. interest rates.



"The Canadian regions most likely to feel the brunt of reduced U.K. demand are Newfoundland & Labrador, which ships about 8 per cent of its total annual goods exports to the U.K., and Ontario, which sends about 6 per cent of its annual goods exports to the U.K.," TD Bank wrote.

The key for Canada will be demand for resources. Demand will depend on how bad things get in the UK. If the economy tanks there, it will affect all of Europe, and demand for commodities will drop putting downward pressure on growth prospects here.

[Anonymous]

I would like to see Canada and the US negotiate the UK's entrance into NAFTA. Kick Mexico out and bring the UK in. Call it TAFTA or Trans Atlantic Free Trade Agreement.

[Anonymous]

CP 's stock is down about 3 per cent, but our latest earnings was down on reduced grain, potash and crude oil shipments.

[Twenty Dollars]

I would like to see Canada and the US negotiate the UK's entrance into NAFTA. Kick Mexico out and bring the UK in. Call it TAFTA or Trans Atlantic Free Trade Agreement.

What's wrong with keeping it in the Americas Herm? Brown skin?