We had one day of selling and then three days of buying, with today set to be a fourth.

Was this another empty threat by the dark forces of tyranny? The sovereign nation deniers?

Not that I don't expect the raging, hate-filled EU mandarins in Brussels to do all they can to remove as much business as they can from the City of London. But there's a reason that there is a financial centre there which predates the EU by at least 100 years and will likely outlive it by 100 years.
But they'll try to hurt it. They've already started.

Like the mafia heads of a protection racket, they will be trying to put the word around: "see what happens when you go against us".

Did Brexit even happen?

AFR:

The tantalising power of low interest rates has boosted global share markets, with the ASX recovering nearly all the losses in the wake of Britain's historic Brexit vote.

The benchmark S&P/ASX 200 Index climbed within three points of last Thursday's, pre-referendum close, before selling in the big banks trimmed gains to 24 points, or 0.5 per cent, to 5257 around midday.

Miners are buoying the sharemarket, with BHP Billiton climbing 3.3 per cent amid swirling rumours that the company may be interested in making another pitch for Canada's Potash Corp.

Rio Tinto has climbed 2.5 per cent and Fortescue 2.4 per cent after iron ore jumped again on Thursday night, by 3.3 per cent to $US55.66 a tonne.
 
Meanwhile, the Australian 10-year bond yield pushed back below 2 per cent on Friday morning, as global rates push lower ahead of widely expected fresh central bank stimulus.

While the initial shock of the Brexit vote plunged financial markets into turmoil, Australian investors and those outside the UK have come to the understanding Britain's leaving the European Union won't have a material global economic impact.
"After that initial knee-jerk reaction, people are now looking at the underlying fundamentals of the decision and have decided the overall impact is modest," said Romano Sala Tenna, portfolio manager at Katana Asset.

British shares surged to their highest for the year overnight, aided by a plunging pound and talk of the Bank of England lowering interest rates.


The BoE is one of the few central banks that has avoided extraordinary monetary policy in recent years, in an environment where central banks are starting to lose their credibility.

Since Brexit, there has been talk the European Central Bank is considering expanding its asset purchasing program, there's been fresh stimulus in Korea, a rate cut in Taiwan and the Bank of Japan has suggested it will continue to ease.

"The promise of another dose of central bank stimulus has given markets a healthy lift, though it is just a short term fix," said Mr Sala Tenna.

"The UK central bank still has a bit of credibility, but central banks around the world are starting to lose their clout somewhat."
 
While Brexit does increase the political risk in Europe, the Spanish elections on Wednesday showed increased enthusiasm for the governing People's Party which is more aligned to a united Europe, suggesting the population prefers stability.

The impending Australia election has had little influence on financial markets in the last eight weeks, however the ASX may receive another boost following the decision.

Data released by AMP Capital shows stocks rose an average 4.8 per cent over the three months after the last 12 federal elections.

"Relief at getting the election out of the way may help," said Shane Oliver, head of investment strategy, at AMP Capital.
 
"But the likely failure of the new government to have control of the Senate, September quarter seasonal weakness in shares and Brexit uncertainty are likely to weigh in the short term."

The price of oil has slipped again, though resource and energy stocks are trading higher on Friday morning. A possible ceasefire in Nigeria signals there may be an increase in supply soon, making it difficult for oil to push past recent highs.

If GB has problems, it's because they were a member of the EU. Now that they're out, they can start strengthening their position in the world, which they will do

Dirty Paki Khunt wrote on Jul 1^st, 2016 at 4:30pm:



That's the whole idea ... slaves to no one, not the EU, not anyone

Dirty Paki Khunt wrote on Jul 1^st, 2016 at 3:51pm:


Britain lost her AAA credit rating in 2013 - but then quickly regained it again.

Dirty Paki Khunt wrote on Jul 1^st, 2016 at 3:51pm:


Canada has just successfully negotiated a free trade deal with the EU .

Not that you need a free trade deal to trade. The UK's trade with the US is increasing, yet both have never had a free trade deal with each other. The UK's trade with the EU is decreasing, yet it's increasing with the rest of the world.

As for "subsidies Britain receives from the EU" - this is actually British money that Britain paid into the EU and the EU is just giving Britain some of it back. Britain is a net contributor to the EU budget - the biggest contributor after Germany.