Investors across the United States on Thursday acted as if the British vote on whether the stay in the European Union or leave will be to stay, sending stocks hurtling upward by 230 points to more than 18,000 on Dow Jones.
But the fact is while the votes have been cast, they will be tabulated and totals released overnight, with the possibility of a rocky ride for markets on Friday.
CNN warned that it is entirely possible that the American economy could take a hit, just when its jobs creation is stagnating under President Obama’s policies and while official unemployment rates are low, that’s mostly because of the tens of millions of people who simply have stopped looking for work and therefore no longer are counted as “unemployed.”
CNN said, “While the International Monetary Fund released a report … that found leaving the EU would primarily hurt the U.K. economy, it could affect the U.S., too – particularly if there’s a significant negative market reaction.”
The report cited Federal Reserve chairwoman Janet Yellen’s comments when she said the vote “could have consequences for economic and financial conditions in global financial markets. If it does so, it could have consequences in turn for the U.S. economic outlook.”
She said the Federal Reserve already had decided not to raise interest rates at its most recent meeting because of the threat of an economic freefall.
USA Today said it appeared investors on Thursday were betting the vote will be to stay, with its resulting higher level of stability.
Said the report, “The Dow Jones industrial average ended up about 230 points, or 1.3 percent, with the Standard & Poor’s 500 index posting the same percentage gain. The Nasdaq composite jumped 1.6 percent.”
Benchmarks across Europe were similar, the report said.
Marketwatch cited Key Private Bank strategist Bruce McCain forecasting that voters “almost always favor the devil we know to the devil we don’t know” and a resulting victory for the stay in side.
And Randy Frederick, of Schwab Center for Financial Research, said in the report, “A relief rally could ensue in the coming weeks, but substantial upside is likely to be limited by the same factors that have been weighing on the markets.”
Voters headed to polls on day Thursday across the UK, but few exit polls are conducted there, so it will be actual results that reveal the decision.
Those are expected to be announced from dozens of polling districts overnight, with final totals expected overnight about 2 a.m. or 3 a.m. in New York.
CNN reported earlier it was President Obama who took to the podium during a visit to the UK in April and told the British population they needed to vote to stay.
At the time, he said, “The United States wants a strong United Kingdom as a partner. And the United Kingdom is at its best when it’s helping to lead a strong Europe.”
He said if the vote is to leave, American efforts will continue to focus on a trade deal with the EU, and Britain then would drop to the back of the line. His comment was that a deal is “not going to happen anytime soon,” assuming a vote to leave.
However, State Department spokesman John Kirby tempered those comments, with, “We don’t anticipate anything changing the special relationship that we have with the U.K.”
Zerohedge explained the votes are being totaled in 382 counting areas, with results being released overnight into Friday morning.
Campaigners on both sides said in the report that the turnout is expected to have an impact, with the lower the turnout, the more likely the “leave” vote would win.
The announced results, the report said, probably will be final, because the rules “do not provide for a national recount under any circumstances.”
Local officials would decide if local results would be subject to another county.
from PropagandaGuard https://propagandaguard.wordpress.com/2016/06/23/british-eu-vote-looms-over-u-s-economy/
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