Jun 9, 2017 | Investment Advice

International News (Issue 452) – June 9th, 2017

Where to begin?

The result of the British election overnight seems to have thrown markets yet another curveball.

As we type it seems the Brits will be faced with a hung parliament, and a likely change in government.

The trouble with this isn’t so much the change in government, but whether a grand coalition made up of the former opposition parties (Labour and Liberal Democrats predominantly) can even form a functioning government with just 10 days to go before Britain is supposed to commence formal exit negotiations with the European Union over BREXIT.

To say it’s a mess is an understatement.

Further complication comes from the fact that both Labour and the Liberal Democrats were forcefully in favour of Britain remaining in the European Union, which could in actual fact prove to be a positive and lead to an attempt at a ‘soft exit’ from the EU which many would welcome.

Whether the Europeans are prepared to allow the Brits a soft exit remains to be seen after the ignominy of their announced departure only a year ago.

I guess we watch this space.

The US Federal Reserve meet next week and will likely raise interest rates again on Wednesday night Australian time.

Have a great weekend.

Jono & Guy

Thursday Closing Values

 IndexChange%
U.S. S&P 500 2434 +4 +0.2
London’s FTSE 7450 -93 -1.2
Japan’s Nikkei 19909 -164 -0.8
Hang Seng 26063 +152 +0.6
China’s Shanghai 3150 +58 +1.9

 

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