Global markets are feeling the jitters again, as the work week dawns on markets feeling the Brexit hangover.
CKNW Business analyst Robert Levy says while there are nerves everywhere, all eyes are on London.
“The markets to watch are the ones that were the most impacted on Friday. So we’re seeing the pound extend its low off its 31 year low, as the pound slumped on Friday, gold and the US dollar continuing to get a bid, so that as well impacts the Canadian dollar to the negative side.”
The pound, has already seen more than a 2% dip in early trading, while gold is up about 5%.
Levy says stock markets will also likely see high volatility as they open.
“Its going to be financial stocks. We saw financial stocks heavily affected because London was the financial capital of the world. There’s no indication that that’s going to change just yet, but it weighed on the stocks as we wait to see what happened.”
He adds the big concern now is whether the slide in stocks forces brokers to call in cash via margin calls, potentially sparking further selloffs.
“Good names and bad names get affected. So that’s the fear, do we see stocks sell off and continue to sell of during this trading week.”
In Asian markets, where Monday trading is already well underway there are signs of volatility, with Hong Kong’s Hang Seng index down just under 1%, while Japan’s Nikkei has recovered about 1.5%, after sliding nearly 8% in the aftermath of the Brexit vote.