The upcoming week is laden with risks and opportunities. Equities markets have become persona non grata for traders and investors across the board. On Friday, 24 June 2016 European indices were pummelled with the Ibex 35 down 12.35%, the CAC 40 index 8.04% lower, the German DAX down 6.82%, the FTSE 100 down 3.15% and the Euro Stoxx 50 PR down 8.62%. Wall Street was not immune to the fallout, as the Dow Jones plunged 3.39%, the S&P 500 index dropped 3.59% and the NASDAQ composite index shed 4.12%. Equities saw trillions of dollars wiped out in a Black Friday of trading.
However, as is always the case when equities markets are under pressure gold gained favour. The precious metal which was increasingly looking like it would remain under $1,300 an ounce spiked to $1315 per ounce. The performance of gold has been remarkable during this highly volatile trading period. Recall that in the lead up to the Brexit referendum, momentum was swinging wildly between remain campaigners and Brexiteers. Ultimately the vote went in favour of a Brexit by a margin of 52% to 48%. The high spot price for gold is $1,355.04 and the low spot price for gold is $1,246.43. For June 24, gold closed in the Comex at $1,320 per ounce, up 4.66% or $58.80.
Of course, financial headlines around the world are overwhelmingly running Brexit fallout stories. In Britain you have shadow cabinet members resigning, complete upheaval in the British political system, concerns about who will be replacing Prime Minister David Cameron in October, issues of immigration and trade and more. Recently we have seen announcements by major banks beginning to move some of their operations out of the United Kingdom. The UK will likely have to invoke Article 50 of the Lisbon Treaty to begin the divorce proceedings from the EU. This painful, complicated and costly exercise will bring about the biggest change to the political, social and economic structure of the European Union in its entire history.
It is against this turbulent backdrop that we explore the many profitable trading opportunities presented by analysts for the upcoming week.
