Analysts across Wall Street and the City of London are currently weighing in on the implications of Brexit for the UK, Europe, the US and the rest of the world.
Nomura’s Global Markets Research division is warning on the potential contagion effects Brexit could have on markets in Asia.
Brexit: Expect Waves Of Contagion on Asia
Nomura’s analysts expect a globally coordinated central-bank response to the ‘leave’ vote to prevent a global financial market meltdown. Liquidity support through FX swap arrangements and possible FX intervention is likely.
However, with central bank policy credibility hanging by a thread, it’s unclear how successful these emergency measures will ultimately be when there is extreme market risk aversion.
Asian sovereigns face rating pressure
But it is clear...
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