Investors pulled $21 billion from global equities in the past week, the highest weekly outflow since last August's China-related ructions, with almost half that amount withdrawn on the Monday after Britain's shock Brexit vote, Bank of America Merrill Lynch said today.
The yen climbed against the dollar today, boosted by the uncertain risk environment left by Britain's shock vote to leave the European Union as well as the view that the U.S. Federal Reserve will now hold off from raising interest rates.
U.S. bank subsidiaries of Deutsche Bank AG and Banco Santander SA yet again failed the Federal Reserve's stress test today due to "broad and substantial weaknesses" in their capital planning processes.
The stress tests created for banks by U.S. regulators after the 2008 financial crisis may prove their worth this week, providing a timely message on banks' hardiness in the midst of turbulence over last week's vote by Britain to leave the European Union.
I took this week off for a holiday...until the UK Leave vote required a hasty return to address a radical shift in the global politico-economic landscape. Yet, it must be allowed that nobody could have confidently predicted the outcome of the UK referendum on European Union membership.