Brexit, it is

United Kingdom voted to leave the European Union with votes of 51.9%. The economic repercussions of which would take time before the global community can have some clarity. It will not be business as usual for flow of goods and capital funds.

As an immediate impact, Sterling Pound (GBP) took a big hit. GBP dived 7.60% against Singapore dollar (1 GBP = S$1.855 as at 7.15 pm). FTSE 100 (UK) stock index dropped 4.45% at 7.17 pm.

In this part of the world, the stock markets declined.

Stock Index Percentage change
Nikkei 225 – 7.92%
Aust All Ordinaries – 3.09%
Seoul Composites – 3.09%
Hang Seng Index – 2.92%
Taiwan Weighted – 2.30%
NZSE50 – 2.25%
BSESN (Mumbai) – 2.24%
Straits Times Index – 2.09%
Shanghai Composite – 1.30%

As the European markets open for trading, Germany DAX is down 7.22% at 8.05 pm (Singapore time), France CAC 40 dropped 8.74%.

Those who were invested in some of these financial instruments would see their investments affected. For those who are not invested, it is the right move. In a few more days, it will be 30 June. Half year into 2016 and we see so much happening to the financial markets. The world does not need a Brexit to add to the already volatile markets.

The Brexit event is still evolving and it is better to stay cautious with investments.

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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