On the heels of the Dow moving lower once again, traders fear Brexit could be a body blow to global financial markets.

A Portion of today’s note from Art Cashin:  Might The Fed Test The Waters? – No one expects the FOMC to surprise the markets with its statement Wednesday. Some traders, however, wonder if the Fed might “test” the markets.

The test could be that they were scheduling a press conference for the July meeting. They could say – either in the statement or via Chair Yellen’s press conference Wednesday – that it was just to keep their options open depending on the data.

If they do it in the statement, they could watch the market’s reaction in the next thirty minutes. If it was very negative, Yellen could remove the sting at the presser. In any case, it might give the FOMC a chance to take the bond market’s temperature on an imminent rate move.

Overnight And Overseas – In Asia, Tokyo got dinged again despite a mild pullback in the yen. Shanghai was up a bit, perhaps on hopes of a favorable inclusion decision by MSCI. Australia got whacked mostly in catch-up to Monday’s carnage. India and emerging markets were mixed.

In Europe, new polls and the Sun’s endorsement of Brexit, knocked the FTSE for a loop, led by the banks and finanicals. That group also led the weakness on the continent amid fears that Brexit could be a body blow to global financial markets. Yield on German 10 year goes negative as flight to safety intensifies.

In U.S., the dollar rallies on that flight to safety. That helps send both precious and base metals lower. Crude is lower again with WTI threatening to break $48, despite upbeat comments from IEA. Yield on U.S. ten year dips below 1.6% as Mark Grant suggested it would a few months back.

Consensus – Crude and Brexit concerns may neutralize the 48 hour wraparound upward bias around an FOMC meeting. Pressure could be added if WTI dips below $48. New rumors float of a potential “leak” of Clinton emails. Bulls will try for a bounce.

Stay wary, alert and very, very nimble.

To hear what John Embry is doing with his own money right now as well as more about the coming plunge in the stock markets, surge in the price of gold, silver, and the shares, CLICK HERE OR ON THE IMAGE BELOW.

***Also just released: Felix Zulauf Says Gold To Rally In 2016 CLICK HERE.

KWN Embry mp3 6:12:2016

***KWN also released an absolutely jaw-dropping interview discussing the gold and silver markets with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world and he discusses the gold and silver markets, coming chaos and much more! To listen CLICK HERE OR ON THE IMAGE BELOW.KWN Belkin mp3 6:8:2016© 2015 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged.

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