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