The Monday after Brexit (UPDATE TUES)

The Monday after Brexit (UPDATE TUES)

Traders work on the floor of the New York Stock Exchange (NYSE) on June 27, 2016 in New York City. Markets around the globe continue to react negatively to the news that Britain has voted to leave the European Union. The Dow Jones industrial average was down over 200 points in morning trading. Spencer Platt/AFP
Traders work on the floor of the New York Stock Exchange (NYSE) on June 27, 2016 in New York City. Markets around the globe continue to react negatively to the news that Britain has voted to leave the European Union. The Dow Jones industrial average was down over 200 points in morning trading. Spencer Platt/AFP

The first full day of trading after the Brexit vote is over and it was a rough one. Asia was mixed but US and European stocks tumbled badly. We followed the turmoil all day and today we end with a short summary.

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The Monday after Brexit

Tuesday morning summary

New York, AFP – US and European stocks tumbled again Monday, while the pound fell to a three-decade low against the dollar as global markets reeled from Britain's vote to leave the European Union.

Asian markets had steadied after Britain's surprise June 23 vote to abandon the European Union wiped $2.1 trillion off international equity values Friday.

But investors embarked on a new wave of selling in European trade followed by a heavy sell-off on Wall Street, as they grappled with the financial consequences of the Brexit referendum.

London's FTSE 100 index fell 2.5 percent at closing, masking steeper falls in key sectors likely to be affected by Brexit.

Frankfurt's DAX 30 index and the CAC 40 in Paris both shed 3.0 percent, while the broad-based S&P 500 in the US dropped 1.8 percent.

The two-day losses in the S&P 500 were $974.2 billion, the third worst back-to-back stretch in history, according to S&P Dow Jones Indices.

The dollar gained on both the euro and the pound, while oil prices retreated.

Monday updates

20:30

The New York Stock Exchange has opened and the Dow Jones Index promptly dropped by 148 points, or 0.85 percent. Overall, global investors are still clearly worried about Brexit. Analysts say trading this week throughout the world could be volatile. I'll have a short summary of the full day's trading tomorrow morning.

20:10

Here is how the London Stock Exchange was doing as of 2pm London time. Next comes New York.

18:30

Commuters heading into the City of London walk across London Bridge, in front of Tower Bridge, in central London on June 27, 2016. /AFP PHOTO / ODD ANDERSEN

British markets hit hard again

While investors in Thailand seemed calm enough, that is not the case this morning in Britain. The Guardian reports the FTSE 100 index of major blue-chip companies was as of 10am local time, down 100 points, a loss of 1.6%. That follows a 199-point tumble on Friday.

The FTSE 250 index, of medium-sized firms, has slid by 5% today.

18:00  One piece of good news is that there has been no local panic. The Bangkok stock exchanges actually closed up. Here is a summary from our online reporters:

SET closes up 11.12 to 1,424.31

The Stock Exchange of Thailand main index rose 0.79%, or 11.12 points, to 1,424.31 on Monday.

Total trading value was 44.8 billion baht, with 11.12 billion shares changed hands.

SET50 index rose 0.52%, or 4.61 points, to 897.24 in trade worth 24.4 billion baht.

MAI gained 1.80%, or 9.25 points, to 521.83 in transactions worth 1.72 billion baht.

16:30  Well, there hasn't been panic today with many stock exchanges, including Bangkok, up slightly on the day. European markets have begun lower, however.

European stocks lower dispute calming words by British finance minister

British Chancellor of the Exchequer George Osborne /AFP PHOTO

London, AFP – European stock markets mostly slid Monday as British finance minister George Osborne attempted to calm jitters after last week's shock Brexit referendum.

Osborne sought to calm markets after the country's shock vote to leave the EU, and insisted it would be not rushed into a break-up despite pressure from EU leaders.

He said Britain's economy was "as strong as could be" to deal with the fallout of Thursday's momentous Brexit vote.

In London trading, however, no-frills airline EasyJet topped the FTSE 100 fallers board in London, tanking more than 15 percent to 1,116 pence after issuing a grim profits warning.

Traders from ETX Capital work in central london on June 27, 2015. Shares in banks, airlines and property companies plunged on the London stock exchange Monday as investors singled out the three sectors as being the most vulnerable to Britain's decision to leave the EU. / AFP PHOTO / Daniel Leal-Olivas

Banking sector share prices also nursed significant losses on Brexit worries, with Barclays down 0.7 percent, Royal Bank of Scotland losing 9.4 percent and Lloyds shedding 6.6 percent.

Meanwhile, oil prices have now seen a modest rebound on bargain hunting in Asia on Monday.

Pound sinks but some stocks bounce after Brexit vote

AFP – The pound fell Monday to around 30-year lows but most Asian stock markets rebounded from hefty losses fuelled by Britain's decision to leave the European Union, despite fears of months of uncertainty.

On equities markets the Nikkei in Tokyo ended up 2.4 percent – having plunged nearly eight percent Friday – while Shanghai added 1.5 percent and Sydney gained 0.5 percent. There were also gains in Wellington, Manila and Bangkok (up almost one percent at 15:00).

Hong Kong rose 0.1 percent in the afternoon.

However, Seoul was 0.1 percent lower and Singapore lost 0.4 percent, while in early European trade London fell 0.8 percent, Frankfurt shed 0.4 percent and Paris 0.3 percent.

12:00 Oil, too, continues its fall as the fallout from Brexit is not good for economic growth,  in the short-term at least. It's not a panic, however. It won't be long before European financial markets open, so there is still lots of news to come.

Oil extends slide on worries about impact of Brexit

Singapore, AFP – Oil prices suffered fresh losses in Asian trade Monday as the fallout from last week's decision by Britain to leave the European Union batters confidence and ushers in a period of uncertainty.

Global markets took a beating Friday, with some $2.1 trillion wiped off valuations and the British pound plunging to 31-year lows against the dollar, while oil prices slumped more than five percent. And on Monday crude fell further.

11:00 There is still a lot of uncertainty in the markets and the British pound and many financial markets are suffering as a result.

Pound tumbles, most markets extend losses on Brexit woes

AFP, Hong Kong, – The pound sank Monday to 30-year lows while most stock markets tumbled following Britain's decision to leave the European Union, with traders fearing it will lead to months of uncertainty.

Sterling plunged two percent in early exchanges as dealers rushed into assets considered safe, such as the yen and gold, although Japan's Nikkei stock index rallied after suffering a battering on Friday.

Pakistani stockbrokers watch share prices on a monitor during a trading session at the Pakistan Stock Exchange (PSE) in Karachi on June 27, 2016. The benchmark PSE-100 index was 37167.43, down 222.45 points in the morning session as global markets reeled from the Brexit-induced financial and political chaos. / AFP PHOTO / RIZWAN TABASSUM

Stephen Innes, senior trader at OANDA Asia Pacific, warned sterling "is extremely vulnerable" and predicted an interest rate cut in the summer.

He also said there was "a huge concern that London's status as the global financial capital will crumble" if it losses its "passporting" rights, which permit banks to locate themselves in the UK while offering products and services in the EU.

On equities markets Hong Kong shed one percent, Seoul was 0.5 percent lower and Wellington lost 0.1 percent. There were also losses in Singapore, Manila, Jakarta and Taipei.

10:00   Here in Thailand gold prices started the day up 250 baht from Saturday’ s close. Gold, of course, is often considered a safe haven in times of economic uncertainty. The Stock Exchange of Thailand Index is slightly, very slightly, lower as of 10am. The Stock Exchange of Thailand's main index opened at 1,411.72 points, down 1.47 points from Friday's close. The trade value was 1.42 billion baht with 332 million shares traded.

A pedestrian walks past an electric quotation board flashing the Nikkei key index of the Tokyo Stock Exchange (TSE) in front of a securities company in Tokyo on June 27, 2016. Tokyo stocks rebounded from a rout that wiped more than $2 trillion off global financial markets in response to Britain's shock vote to quit the European Union. / AFP PHOTO / TORU YAMANAKA

Tokyo stocks rebound after Brexit sell-off

Tokyo, AFP – Tokyo stocks rebounded Monday from a rout that wiped more than $2 trillion off global financial markets in response to Britain's shock vote to quit the European Union.

But analysts warned that the pain may not be over on financial markets as the referendum result leaves a trail of unanswered questions about the impact of the decision to leave the 28-member bloc.

In early trading, Tokyo's benchmark Nikkei 225 index was up 1.34 percent, or 201.06 points, at 15,153.08, after diving nearly eight percent on Friday in its biggest one-day plunge since Japan's 2011 quake-tsunami disaster.

Japanese Prime Minister Shinzo Abe held an emergency meeting with top officials Monday morning to discuss Brexit and how to deal with the market fallout.

Ahead of the meeting, Abe pointed to unspecified measures to smooth out any impact on the world's number three economy.

Japan's currency surged Friday as traders scooped up the safe-haven unit, seen as a safe bet in times of turmoil.

The rally in the yen, which had already been on the upswing before the vote, is bad for Japanese shares as it poses a threat to profits at major exporters.

Vocabulary

  • abandon: to leave someone/something - ปล่อยทิ้งไว้
  • analyst: a person whose job involves examining facts or materials in order to give an opinion on them - นักวิเคราะห์
  • assets: things owned, especially property and money - สินทรัพย์
  • back-to-back: happening one after another, after one finishes the next begins; consecutive - ที่ต่อเนื่องตามลำดับ
  • batter: to hit something hard many times - ตีติดต่อกัน, โจมตีติดต่อกัน
  • battering: a damaging event; a violent attack - การทุบตีอย่างรุนแรง
  • benchmark (noun): a standard that other things can be compared to, for example, to calculate prices - ตัวเปรียบเทียบ; การวัดเปรียบเทียบสมรรถนะเกณฑ์มาตรฐานหมายถึง การทดสอบเพื่อวัดความสามารถในการประมวลผล หรือการทำงานของ โปรแกรมใดโปรแกรมหนึ่ง หรืออุปกรณ์คอมพิวเตอร์ชนิดใดชนิดหนึ่ง โดยเทียบเคียงกับเกณฑ์มาตรฐาน
  • bet: used to say that you are almost certain that something is true or that something will happen - กล้าคาดคะเน
  • bloc: a group of people, countries, etc. who work closely together - กลุ่ม
  • blue-chip (adj): of an investment that is thought to be safe and likely to make a profit - หุ้นที่มีค่าสูงและเป็นของบริษัทที่มีเสถียรภาพมาก
  • calm: to cause to be peaceful and quiet; without anxiety - ทำให้ใจเย็น,ทำให้ไม่ตื่นเต้น, ทำให้สงบ
  • Chancellor of the Exchequer (noun): (in Britain) the government minister who is responsible for financial affairs - รัฐมนตรีว่าการกระทรวงการคลังของอังกฤษ
  • chaos: a situation in which everything is confused and in a mess - ความยุ่งเหยิง, ความสับสน
  • concern: a worry - ความกังวล
  • confidence: being certain of your abilities or of having trust in people, plans, or the future - ความมั่นใจ
  • consequence: result of effect of something - ผลที่ตามมา
  • consider: to regard as; to think of as - ถือว่า
  • crude (noun): oil that is still in its natural state and has not yet been refined for use by chemical processes - น้ำมันดิบ
  • crumble: to break, or cause something to break, into small pieces - แตกละเอียด
  • currency (noun): the system of money, usually, but not always, that a country uses - เงินตรา
  • deal with: to take action to solve a problem - จัดการปัญหา
  • decade: a period of ten years - ทศวรรษ
  • disaster: an unexpected event, such as a very bad accident, a flood or a fire, that kills a lot of people or causes a lot of damage - ภัยพิบัติ ความหายนะ
  • dive: plunge, to fall quickly from a high position - ดิ่งลงมาจากท้องฟ้า
  • economy: the relationship between production, trade and the supply of money in a particular country or region - เศรษฐกิจ
  • embark on: to start a new project or activity, usually one that will be difficult and will take time - เริ่มดำเนินการสิ่งใหม่ (ที่ยาก)
  • emergency: an unexpected situation involving danger in which immediate action is necessary - เหตุฉุกเฉิน
  • equity (noun): stock shares - หุ้นทุน
  • equity market (noun): stock market, the business of buying and selling shares in companies and the place where this happens; a stock exchange - ตลาดหุ้น
  • exporter (noun): a person, company or country that sells goods to another country - ผู้ส่งออก
  • extend: to continue for a particular period of time or to add more time - ยืดออกไป
  • fallout: the unpleasant effects of something that has happened - ผลร้ายที่ตามมา
  • finance minister (noun): the minister in charge of managing the country's money กระทรวงการคลัง - รัฐมนตรีกระทรวงการคลัง
  • financial: involving money - เกี่ยวกับเงิน, ทางการเงิน
  • frill (noun): extra features or things beyond what is needed - สิ่งที่เกินต้องการ
  • fuelling (verb): causing something to increase - กระตุ้น
  • gain (noun): an increase in the amount of something - จำนวนที่เพิ่มขึ้น
  • global: throughout the world - ทั่วโลก
  • grapple with: deal with a problem; take action to solve a problem - รับมือกับ, จัดการกับ
  • grim: unpleasant and making you feel upset and worried - ที่โหดร้าย
  • hefty: large; expensive - หนัก,ใหญ่, แพง
  • impact (noun): an effect or influence - ผลกระทบ
  • index: a number that shows the price, value, or level of something compared with something else - ดัชนี
  • induce: to cause something, especially a mental or physical change - ทำให้เกิด
  • interest rate: the percentage that a bank or other financial company charges you when you borrow money, or the percentage it pays you when you keep money in an account - อัตราดอกเบี้ย
  • jitters: feelings of being anxious and nervous, especially before an important event or before having to do something difficult - กระวนกระวาย, ว้าวุ่นใจ
  • mask (verb): to hide a feeling, smell, fact, etc. so that it cannot be easily seen or noticed - ปกปิด ซ่อน
  • meanwhile: at the same time - ในเวลาเดียวกัน
  • measure: an action taken to solve a particular problem - มาตรการ
  • modest: fairly small - พอประมาณ ค่อนข้างเล็ก
  • nurse (verb): to help someone deal with a difficult situation -
  • pain: the feelings that you have in your body when you have been hurt or when you are ill/sick; mental or emotional suffering - ความเจ็บปวด
  • plunge (noun): fall; falling; a sudden movement downwards or away from something - การตกอย่างรวดเร็ว, การพุ่งลงไป
  • pose a threat: to be a possible danger - กระทำการซึ่งอาจก่อให้เกิดอันตรายต่อ
  • predict: to say that an event or action will happen in the future, especially as a result of knowledge or experience - คาดการณ์ว่า พยากรณ์จากสถิติว่า
  • profit: money that you make from selling goods and services after all your costs have been paid - กำไร
  • promptly: in an immediate or quick way - ทันที
  • property: a building or buildings and the surrounding land - อสังหาริมทรัพย์
  • rally (verb): a rise in prices after a period of falling prices or little activity -
  • rebound (verb): to rise again after falling, recover - กระโดดขึ้นอีกครั้งหนึ่ง,สะท้อนกลับ,เด้งกลับ
  • reel: to feel very shocked, upset or confused - ตกตะลึง 
  • referendum: an occasion when all the people of a country can vote on an important issue - การลงประชามติ
  • response: a reaction to something that has happened or been said - การตอบสนอง
  • retreat: to move back or away - ถอยกลับ
  • rout (noun): a complete defeat of an opponent in a battle, competition, or election; a sudden and heavy business or financial loss - การทำให้พ่ายแพ้ราบคาบ, การทำให้พ่ายแพ้กระเซอะกระเซิง, การสูญเสียทางการเงินอย่างหนัก
  • safe haven: a safe area - ที่หลบภัย
  • safe-haven (adj): a place where somebody can go to be safe from danger or attack; a safe investment that can be made in times of economic problems, e.g. gold, US treasuries, Japanese yen - ที่ปลอดภัย
  • scoop (verb): to move or lift somebody/something with a quick continuous movement - ตัก, ช้อนขึ้น, ควักขึ้น
  • sector: a group that is part of a larger group - ภาค (ทางเศรษฐกิจหรือสังคม)
  • sell-off (noun): the sale of a large number of stocks, bonds, etc with a fall in value -
  • senior: with a high rank or position - อาวุโส
  • session (noun): a period of time that is spent doing a particular activity -
  • share: any of the units of equal value into which a company is divided and sold to raise money. People who own shares receive part of the company's profits - หุ้น
  • shed: lost - สูญเสีย
  • shock: a strong feeling of surprise as a result of something happening, especially something unpleasant; the event that causes this feeling - ช็อค, ความสะดุ้ง, อาการช็อค
  • significant: large or important enough to have an effect or to be noticed - ซึ่งมีความหมาย
  • sink (verb): to (cause something or someone to) go down below the surface or to the bottom of a liquid or soft substance (past: sank) - จม
  • slide (verb): (past form "slid") to decrease; to fall -
  • slightly: small in size or amount - เล็กน้อย
  • smooth out (verb): to make problems or difficulties disappear - ทำให้หลุดพ้นปัญหา
  • status: official or legal position - สถานภาพ
  • steady (verb): to stop changing and become regular again - คงตัว
  • steep (adj): (of a price or demand) very high; too much; unreasonable - แพง, สูงเกินไป
  • stretch: a continuous period of time - ช่วงเวลา
  • suffer: to be badly affected by a very difficult or unpleasant situation - ประสบความลำบาก
  • surge: to increase very quickly - เพิ่มขึ้นอย่างรวดเร็ว
  • tank (verb): (of a company, share prices, etc.) to fail, to fall -
  • trader: someone who buys and sells things - ผู้ค้า
  • trail: long line or series of marks that is left by somebody/something - ร่องรอยที่ทิ้งไว้ให้ตามได้
  • transaction: the action or process of buying or selling something - การค้า
  • trillion: the number 1,000,000,000,000 - แสนล้าน
  • tumble: to fall down - ล้ม,ล้มลง,ตกลง,หกคะเมน
  • turmoil: a state of uncontrolled activity - การจราจล ความไม่สงบ
  • uncertainty: something that you cannot be sure about; a situation that causes you to be or feel uncertain - ความไม่มั่นใจ (ต่อเหตุการณ์ ชะตาชีวิต ฯลฯ), ความรู้สึกไม่แน่ใจ
  • unspecified: not stated clearly or definitely - ไม่ระบุให้แน่ชัด
  • upswing (noun): a situation in which something improves or increases over a period of time - การเจริญก้าวหน้าขึ้น
  • usher in: to be at the start of a new period, especially when important changes or new things happen, or to cause important changes to start happening - เริ่มต้น, นำเข้ามา
  • volatile: of something that may change suddenly or become more dangerous - ที่ปะทุได้ง่าย
  • vulnerable: easily damaged or harmed - ซึ่งถูกทำลายได้ง่าย
  • warn: to make someone aware of a possible problem or danger - เตือน
  • warning: an action or statement telling someone of a possible problem or danger - คำเตือน, การเตือน
  • wave: an activity or situation which is happening again or is being repeated after a pause -
  • wipe (verb): remove; get rid of something - ทำลาย, ขัดออก
  • woes: great problems or troubles - ความเสียใจ, ความทุกข์ร้อน
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