Arab Today, arab today wall street heavy trading predicted around uk vote
Last Updated : GMT 02:58:23
Arab Today, arab today
Arab Today, arab today

Wall Street: Heavy trading predicted around UK vote

Arab Today, arab today

Arab Today, arab today Wall Street: Heavy trading predicted around UK vote

Wall Street: Heavy trading predicted around UK vote
New York - Arab Today

US stock markets could see heavy trading and increased volatility as investors position for next week’s referendum on whether Britain remains in the European Union.
The June 23 vote could have big implications for the global economy and US stocks. Add to this the annual rebalancing of the FTSE Russell indexes, set to go into effect a day after the vote, and it makes for a busy trading week.
Friday could be the busiest trading day of the year as fund managers adjust their positions to that rebalancing.
Should the British vote to leave the EU, US shares could fall sharply, but a “Remain” vote won’t necessarily result in a big rally, because domestic economic worries may be capping US stocks.
“We are still stuck in the churn,” said Jeff Morris, Head of US Equities at Standard Life Investments in Boston.
Recent polls show the ‘Leave’ campaign in the lead and this has weighed on stocks. Campaigning for the referendum was suspended after the murder of lawmaker Jo Cox, a supporter of Britain staying in the EU.
From an economic standpoint, a move by Britain to quit the EU might not have been as potentially troubling for US stocks. But slowing economic growth is also limiting the upside for those shares, said Eric Wiegand, senior portfolio manager at US Bank’s Private Client Reserve.
“In a low-growth environment, even smaller problems become more pronounced,” he said.
Some investors are not taking a chance.
“We trimmed overall international exposure in the RidgeWorth Allocation Strategies as a means to reducing overall portfolio risk, until such time as the clouds begin to lift,” said Alan Gayle, director of asset allocation at RidgeWorth Investments in Atlanta, referring to Brexit worries.
The CBOE Volatility Index, the favored gauge of investor anxiety, hit a 4-month high on Thursday.
“There has been an increase in investors looking for hedges,” said Stewart Warther, an equity derivatives strategist at BNP Paribas.
Implied volatility — an options-based measure of expected swings in shares — gives a good sense of just how much the impending vote is on investors’ minds.
Usually, implied volatility tends to gradually slope up the further out in time you go. Investors pay more to be protected against unknown risks down the line.
However, options on S&P 500 index that expire a day after the vote sport a level of implied volatility that is higher than for options expiring over the next two months, per BNP Paribas data.
And while a lot of the recent selling has been pegged to Brexit risk, there is little expectation for a big relief rally on Wall Street in case Britain chooses to stay.
“It just doesn’t seem like there is much incentive to move out on the risk curve,” said Standard Life’s Morris, pointing to recent economic data that suggests that recovery is still somewhat tenuous.
Adding to any potential volatility next week will be the rebalancing of Russell indexes — an annual event that requires index-following fund managers to rebalance their own portfolios.
With this year’s rebalance of the Russell 2000 and the Russell 1000 indexes set for a day after the Brexit vote, there is added drama. Managers of index-following funds are forced to buy or sell shares to mimic index performance.
Money managers who might have adjusted positions in anticipation of the rebalance will now prefer to wait until after the vote, said Chad Dale, director of index research at ITG in Toronto.
“What that really does is it compresses the indexer trade into the final day.”

Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today wall street heavy trading predicted around uk vote Arab Today, arab today wall street heavy trading predicted around uk vote

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 18:36 2017 Monday ,20 February

Heavy selling drags Oman shares lower

GMT 06:16 2017 Monday ,20 February

Bank shares lift Tadawul

GMT 13:43 2017 Sunday ,19 February

Local institutional buying lifts Oman shares higher

GMT 15:33 2017 Saturday ,18 February

Lock-up shares worth 39 bln yuan eligible for trade

GMT 09:49 2017 Saturday ,18 February

Qatar Stock Exchange Index Gains 190.17 Points This Week
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday