Concern about Donald Trump and Brexit takes the shine off equities
Investors bail out of sterling and stock markets in Europe and Asia and look for shelter in gold and the yen amid reduced appetite for risky assets
London — Investors bailed out of sterling and stock markets in Europe and Asia on Monday, seeking shelter in gold and the Japanese yen as uncertainty over the terms of Britain’s divorce from the EU undermined appetite for risky assets. The dollar rose, except against the yen, rebounding after suffering its worst week since November when it was hit by a lack of clarity over the policies of US president-elect Donald Trump, whose inauguration is on Friday. "[The movement] shows that people are looking ahead this week with Trump’s inauguration and discussions on Brexit. There is a lot of uncertainty moving forward," said Brian Lan, MD at Singapore-based gold dealer GoldSilver Central. Yields on low-risk German government bonds fell but those on Italian equivalents edged up after rating agency DBRS cut Italy’s credit rating after markets closed on Friday in a move that could raise borrowing costs for the country’s banks. But the eye-catching mover was sterling, a day before a speech by B...
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