Gold Silver Reports — If voters opt to remain in the EU, strategists at Morgan Stanley say the FTSE 100 will rise as much as 14 percent and the Euro Stoxx 50 Index will rally 16 percent. Investors anticipate that the biggest cash pile since 2001 will start flowing back into the region’s stocks.
The British are staying! The British are staying!
But don’t count on a huge bounce, said Jeffrey Kleintop, chief global investment strategist at Charles Schwab & Co.
“The recent fall in global stocks as ‘leave’ sentiment gained polling momentum showed that markets had been expecting the U.K. to stay in the EU. That means you shouldn’t expect a big market rally if that’s exactly what happens,” Kleintop said in a report.
As for bonds, “it goes without saying that if the vote is to remain it’s a risk-on event and Treasuries will get slammed,” said CRT Capital Group LLC bond strategists David Ader and Ian Lyngen in a report, predicting 10-year yields as high as 1.75 percent.
Economists surveyed by Bloomberg say the pound could jump toward $1.50, from about $1.47 now. The euro “would likely see a decent upside move” against the dollar and “weaken versus sterling,” according to a Goldman Sachs report. — Neal Bhai Reports
