Now, let's look at WION's monthly global markets and economic health check to see what happened in February. Broadly, commodities, digital assets, and the dollar fell, driven by differing bets, with US President Donald Trump driving tariff headlines almost every other day.

Commodities, digital assets and dollar decline amid tariff uncertainty

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. <o:p></o:p>

However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound.<o:p></o:p>

This is based on a commentary by Clyde Russell published by Reuters.<o:p></o:p>

Crude oil imports, rising by 11 per cent to 11.28 million barrels per day (bpd) in 2023, has set a new record.<o:p></o:p>

Despite the seemingly robust performance, analysts caution against a straightforward interpretation.<o:p></o:p>

Customs data from January 12 shows a volume increase of 1.11 million bpd from 2022, falling short of the International Energy Agency's (IEA) forecast of a 1.8 million bpd rise in China's oil demand.<o:p></o:p>

The article cited Roy Martin, an energy analyst, who said, "While the numbers are impressive, the actual growth in demand seems less spectacular when considering the broader context." <o:p></o:p>

China's domestic oil production saw a modest 1.8 per cent increase in the first 11 months of 2023, contributing to the scepticism surrounding the narrative of surging demand. <o:p></o:p>

Furthermore, the continuous addition of crude to strategic inventories and a substantial boost in refined product exports point to a more intricate picture of China's oil market.<o:p></o:p>

Moving to coal, China witnessed a staggering 61.8 per cent increase in coal imports in 2023, reaching 474.42 million tons. <o:p></o:p>

This surge, while partly influenced by a rise in electricity demand, is more intricately tied to temporary factors. <o:p></o:p>

Hydropower struggles and a sharp retreat in seaborne thermal coal prices made imported coal more competitive against domestic production. <o:p></o:p>

Analysts anticipate a shift in 2024 as hydropower and other renewables gain traction, potentially limiting the demand for thermal coal.<o:p></o:p>

Iron ore, emerged as a star performer in China's commodity imports, rising by 6.6 per cent to an all-time high of 1.18 billion tons in 2023. <o:p></o:p>

Despite challenges in the residential property sector, the steel industry thrived due to robust performances in vehicle manufacturing, infrastructure, and steel product exports. <o:p></o:p>

Forecasts for 2024 indicate continued high steel output, ensuring sustained demand for iron ore imports and another potentially record-breaking year.<o:p></o:p>

Reflecting on the intricate dynamics, Angela Chen, an economist, stated, "China's import records are a reflection of not just economic growth but also highlight the complexities in different sectors. While the current numbers are impressive, the underlying factors suggest a cautious optimism about the sustainability of this trend in the coming year."<o:p></o:p>

&nbsp;(With inputs from Reuters)<o:p></o:p>

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound.

China achieved record-breaking imports of crude oil, coal, and iron ore in 2023, marking a substantial surge in demand for key commodities. However, a closer analysis reveals nuanced factors behind these impressive figures, prompting experts to question the true strength of China's economic rebound. This is based on a commentary by Clyde Russell published by Reuters. Crude oil imports, rising by 11 per cent to 11.28 million barrels per day (bpd) in 2023, has set a new record. Despite the seemingly robust performance, analysts caution against a straightforward interpretation. Customs data from January 12 shows a volume increase of 1.11 million bpd from 2022, falling short of the International Energy Agency's (IEA) forecast of a 1.8 million bpd rise in China's oil demand. The article cited Roy Martin, an energy analyst, who said, "While the numbers are impressive, the actual growth in demand seems less spectacular when considering the broader context." China's domestic oil production saw a modest 1.8 per cent increase in the first 11 months of 2023, contributing to the scepticism surrounding the narrative of surging demand. Furthermore, the continuous addition of crude to strategic inventories and a substantial boost in refined product exports point to a more intricate picture of China's oil market. Moving to coal, China witnessed a staggering 61.8 per cent increase in coal imports in 2023, reaching 474.42 million tons. This surge, while partly influenced by a rise in electricity demand, is more intricately tied to temporary factors. Hydropower struggles and a sharp retreat in seaborne thermal coal prices made imported coal more competitive against domestic production. Analysts anticipate a shift in 2024 as hydropower and other renewables gain traction, potentially limiting the demand for thermal coal. Iron ore, emerged as a star performer in China's commodity imports, rising by 6.6 per cent to an all-time high of 1.18 billion tons in 2023. Despite challenges in the residential property sector, the steel industry thrived due to robust performances in vehicle manufacturing, infrastructure, and steel product exports. Forecasts for 2024 indicate continued high steel output, ensuring sustained demand for iron ore imports and another potentially record-breaking year. Reflecting on the intricate dynamics, Angela Chen, an economist, stated, "China's import records are a reflection of not just economic growth but also highlight the complexities in different sectors. While the current numbers are impressive, the underlying factors suggest a cautious optimism about the sustainability of this trend in the coming year." (With inputs from Reuters)

China's impressive commodity imports mask deeper complexities

A new report by the World Bank has revealed that commodity prices are set to decline&nbsp;in 2023.

The World Bank's&nbsp;Commodity Markets Outlook report&nbsp;expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024.

Nevertheless, the bank warns that consumers will continue feeling the pinch, as prices for all main commodity groups are substantially higher than pre-pandemic levels.

The research highlights the effects of rising food costs, which are at their second-highest level in real terms since the 1973-75 grain shortages. This, in turn, contributes to increased food insecurity, which has severe consequences for impoverished communities in many developing nations.

Energy prices fell by 20 percent in the first three months of 2023 compared to the final three months of 2022, owing to decline in oil and natural gas prices. The report&nbsp;anticipates that much of the recent decline will be maintained for the rest of the year, with prices perhaps rising in 2024.

Metal prices, on the other hand, are up nearly 10 percent in 2023, but that is due to a drop in pricing near the close of last year when a strong dollar and concerns about Chinese demand weighed on prices. Prices of non-energy commodities are expected to fall 10 percent&nbsp;this year. Another 3 percent&nbsp;fall in non-energy commodities can be expected in 2024 due to weak global demand, the report adds.&nbsp;

Dangers Ahead

In its forecast, the World Bank did mention certain dangers.&nbsp;

If supply remains below target, Russia and the Organisation of Petroleum Exporting Countries (OPEC) may provide less oil than projected. Further, tighter finance conditions may limit oil and coal companies' capacity to grow supplies elsewhere. Tighter controls on fossil fuels are also expected to deter investment in the sector.

Chinese demand is&nbsp;unknown, though the bank suggests&nbsp;that an economic rebound could be led by property rather than services, which would be suitable for commodities such as aluminium and copper.&nbsp;

In Europe, concerns regarding gas stocks next winter and uncertainties about the Black Sea Grain Initiative will remain. Moreover, fears of erratic weather may hike costs in the continent. Tighter credit conditions and geopolitical tensions are some other risks that could impact the global commodity markets in 2023, notes the report.&nbsp;

A new report by the World Bank has revealed that commodity prices are set to decline in 2023. The World Bank's Commodity Markets Outlook report expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024.

A new report by the World Bank has revealed that commodity prices are set to decline in 2023. The World Bank's Commodity Markets Outlook report expects commodity prices to decrease by 21 percent this year, the steepest drop since the pandemic, before stabilising in 2024. Nevertheless, the bank warns that consumers will continue feeling the pinch, as prices for all main commodity groups are substantially higher than pre-pandemic levels. The research highlights the effects of rising food costs, which are at their second-highest level in real terms since the 1973-75 grain shortages. This, in turn, contributes to increased food insecurity, which has severe consequences for impoverished communities in many developing nations. Energy prices fell by 20 percent in the first three months of 2023 compared to the final three months of 2022, owing to decline in oil and natural gas prices. The report anticipates that much of the recent decline will be maintained for the rest of the year, with prices perhaps rising in 2024. Metal prices, on the other hand, are up nearly 10 percent in 2023, but that is due to a drop in pricing near the close of last year when a strong dollar and concerns about Chinese demand weighed on prices. Prices of non-energy commodities are expected to fall 10 percent this year. Another 3 percent fall in non-energy commodities can be expected in 2024 due to weak global demand, the report adds. Dangers Ahead In its forecast, the World Bank did mention certain dangers. If supply remains below target, Russia and the Organisation of Petroleum Exporting Countries (OPEC) may provide less oil than projected. Further, tighter finance conditions may limit oil and coal companies' capacity to grow supplies elsewhere. Tighter controls on fossil fuels are also expected to deter investment in the sector. Chinese demand is unknown, though the bank suggests that an economic rebound could be led by property rather than services, which would be suitable for commodities such as aluminium and copper. In Europe, concerns regarding gas stocks next winter and uncertainties about the Black Sea Grain Initiative will remain. Moreover, fears of erratic weather may hike costs in the continent. Tighter credit conditions and geopolitical tensions are some other risks that could impact the global commodity markets in 2023, notes the report.

Commodity prices set to plunge in 2023, but relief for consumers remains elusive: World Bank report

Worldwide recession fears are impacting all the major sectors in the world. Commodities including metals and mineral sector is also seeing developments including geopolitical ones.

Global commodities market: Growth in mineral, mining sector

China's army of metal processors and traders has flipped from buyers to sellers. This amid a sharp downshift in economic activity in the world's top manufacturer, which is also heralded a potential warning sign for steel, aluminium and other key industrial commodities.

China's metals traders offload stockpiles as bleak demand outlook bites

The war in Ukraine has triggered a food crisis in Bangladesh. Traders are hoarding essential commodities to drive up prices. The Bangladesh government has responded by announcing a nationwide ration scheme. Mariam Wardak tells you more.

South Asia Diary: Ukraine war triggers food crisis in Bangladesh

In Naya Pakistan, Essential Commodities Are Beyond The Reach Of The Average Citizen

Gravitas: Tomato Prices soar in Pakistan

&nbsp;

Andhra Pradesh government on Saturday decided to provide essential commodities to all the 'eligible' cyclone-affected families in the 32 habitations of the Devipatnam Mandal and people facing water-scarcity in villages of East and West Godavari districts.

The decision was taken after the District Collector of East Godavari requested the state government to release essential commodities to cyclone-affected families.

After consideration of the proposal, the government decided to order for distribution of essential commodities to "all the eligible families of 32 habitations located in Devipatnam Mandal, and also wherever inundation of water in the villages of East Godavari and West Godavari Districts to release essential commodities on free of cost to the eligible families."

The items for distribution are -- rice, kerosene and P oil at Rs 25, Rs 2 ltr, Rs 1 ltr/per family, respectively and red gram dal, onions and potatoes at Rs 1 Kg.

The Commissioner of Civil Supplies and Managing Director of Andhra Pradesh State Civil Supplies Corporation Limited, Vijayawada have been urged to take necessary action for distribution of commodities to the eligible families without any delay.

Meanwhile, the collectors of East Godavari and West Godavari districts have been directed to ensure distribution of essential commodities to the eligible families with adequate publicity about the free distribution scheme.

&nbsp;

Andhra Pradesh government on Saturday decided to provide essential commodities to all the 'eligible' cyclone-affected families in the 32 habitations of the Devipatnam Mandal and people facing water-scarcity in villages of East and West Godavari districts.

Andhra Pradesh government on Saturday decided to provide essential commodities to all the 'eligible' cyclone-affected families in the 32 habitations of the Devipatnam Mandal and people facing water-scarcity in villages of East and West Godavari districts. The decision was taken after the District Collector of East Godavari requested the state government to release essential commodities to cyclone-affected families. After consideration of the proposal, the government decided to order for distribution of essential commodities to "all the eligible families of 32 habitations located in Devipatnam Mandal, and also wherever inundation of water in the villages of East Godavari and West Godavari Districts to release essential commodities on free of cost to the eligible families." The items for distribution are -- rice, kerosene and P oil at Rs 25, Rs 2 ltr, Rs 1 ltr/per family, respectively and red gram dal, onions and potatoes at Rs 1 Kg. The Commissioner of Civil Supplies and Managing Director of Andhra Pradesh State Civil Supplies Corporation Limited, Vijayawada have been urged to take necessary action for distribution of commodities to the eligible families without any delay. Meanwhile, the collectors of East Godavari and West Godavari districts have been directed to ensure distribution of essential commodities to the eligible families with adequate publicity about the free distribution scheme.

Andhra Pradesh government to provide essential commodities to cyclone, water-scarcity affected families

Authors: Larisa Yarovaya and Brian Lucey*

In the last year, the price of Bitcoin has increased from less than US$800 to more than US$12,000. This huge spike in value has many asking if it is a bubble or if the high price today is here to stay.

Finance defines a bubble as a situation where the price of an asset diverges systematically from its fundamentals. Investment mogul Jack Bogle says there is nothing to support Bitcoin, and the head of JP MorganChase, Jamie Dimon has called it a fraud &ldquo;worse than tulip bulbs&rdquo;.

Like any asset, Bitcoin has some fundamental value, even if only a hope value, or a value arising from scarcity. So there are reasons to hold it. But our research does show that it is experiencing a bubble right now.

Together with Shaen Corbet at Dublin City University, we took as the fundamentals of Bitcoin elements of the technology that underpins it (and other cryptocurrencies). We looked at measures, which represent the key theoretical and computational components of how cyrptocurrencies are priced.

New Bitcoin is created by a process of mining units called blocks. Bitcoin is built on blockchain technology &ndash; a digital ledger of transactions &ndash; which enables the currency to be traded independently from any central banking system, without risk of fake or duplicate Bitcoins being used. Instead of having a bank verify pending transactions (a &ldquo;block&rdquo;), miners check them and, if approved, the block is cryptographically added to the ever-expanding ledger.

So the first measure we examined relates to mining difficulty. It calculates how difficult it is to find a new block relative to the past. As per the Bitcoin Protocol, the number of Bitcoin is capped at 21m (there are currently 16.7m in circulation). This means that as more people mine for Bitcoin and more blocks are created, each block is, all things being equal, worth less than the previous block.

The second measure we looked at relates to the &ldquo;hash rate&rdquo;. This is the speed at which a computer operates when mining. To successfully mine Bitcoin, you must come up with a 64-digit hexadecimal number (called a &ldquo;hash&rdquo;), which is less than or equal to the target hash. The faster you can do this, the better chance you have of finding the next block and receiving payment. 
The third measurement was &ldquo;block size&rdquo;. This relates to how large the chain is at any given time, with larger chains taking longer to mine than shorter ones.

And lastly we looked at the volume of transactions conducted. Any asset, in particular any currency, which is more widely used will be more valuable than one which is used less frequently.

In our study, we examined data from Bitcoin&rsquo;s early days &ndash; from July 2010 to November 2017. The price of one Bitcoin did not rise above US$1 until April 16, 2011, then to US$10 on June 3, 2011 and US$100 on April 2, 2013. Since then the price rise has clearly been exceptional.

<iframe allowfullscreen="allowfullscreen" allowtransparency="true" frameborder="0" height="450" mozallowfullscreen="mozallowfullscreen" msallowfullscreen="msallowfullscreen" oallowfullscreen="oallowfullscreen" scrolling="no" src="https://datawrapper.dwcdn.net/mygLM/1/" webkitallowfullscreen="webkitallowfullscreen" width="100%"></iframe>

<figure class="align-center zoomable">
We then applied an accepted method that is used to detect and date stamp bubbles after they burst. In essence, this involves identifying the existence of an explosive component in a series. As the series, here the price of bitcoin, &ldquo;explodes&rdquo;, it runs the risk, like any explosion, of flying apart.

A possibly counter-intuitive result of this approach is that if a fundamental driver and the price of an asset both show an explosive component, we might not conclude a bubble is present. A bubble is when something deviates from its fundamental value. If the fundamental value is itself growing explosively then the price would also.

Think of dividends on a stock. If, somehow, these were to grow at an explosive rate we might expect to see the price do the same. While unsustainable, this is not technically a bubble. To overcome this, we then date stamp a bubble as being present when the price shows an explosive component and the underlying fundamentals do not.

Here are the results of the analysis:

<a href="https://images.theconversation.com/files/197566/original/file-20171204-4062-195jztn.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img alt="" src="https://images.theconversation.com/files/197566/original/file-20171204-4062-195jztn.jpeg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" /></a>

<figcaption>The Bitcoin Bubbles.Authors own calculations</figcaption>
</figure>

&nbsp;

The orange lines denote when the price is showing explosive behaviour. We also see a period where the hash rate was growing explosively &ndash; the blue columns in late 2013 and early 2014. This is also an indication of a price bubble, which went on to burst.

So there are clear points where bubbles are visible &ndash; including now. The price of Bitcoin at present shows explosive behaviour in the absence of anything similar in its fundamentals. We see the price moving upwards in a manner that is not related to the technical underpinnings. It is a clear bubble.

A weakness of these tests and indeed all bubble identification tests is that they take place after the bubble has burst. Even this test, which can be redone as swiftly as new data arrives, is such. Bubbles by their nature grow in a compound manner &ndash; so even a day or two delay in addressing the situation can make a bubble significantly worse.

What is not yet available is an accurate advanced warning bubble indicator. In its absence, this approach may be the best. Unfortunately, we cannot use this approach to determine the extent of the bubble. There is no well-accepted model that suggests a &ldquo;fair&rdquo; value for Bitcoin. But whatever that level is, it is almost certain that, at present, it is well below where we are now.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/the-bitcoin-bubble-how-we-know-it-will-burst-88511" rel="nofollow" target="blank">original article</a>.

*Brian Lucey:&nbsp;Professor of International Finance and Commodities, Trinity College Dublin

(Disclaimer: Both authors write here in a personal capacity).

An analysis of Bitcoin's fundamentals shows how much of a bubble its price has inflated to

Authors: Larisa Yarovaya and Brian Lucey* In the last year, the price of Bitcoin has increased from less than US$800 to more than US$12,000. This huge spike in value has many asking if it is a bubble or if the high price today is here to stay. Finance defines a bubble as a situation where the price of an asset diverges systematically from its fundamentals. Investment mogul Jack Bogle says there is nothing to support Bitcoin, and the head of JP MorganChase, Jamie Dimon has called it a fraud “worse than tulip bulbs”. Like any asset, Bitcoin has some fundamental value, even if only a hope value, or a value arising from scarcity. So there are reasons to hold it. But our research does show that it is experiencing a bubble right now. Together with Shaen Corbet at Dublin City University, we took as the fundamentals of Bitcoin elements of the technology that underpins it (and other cryptocurrencies). We looked at measures, which represent the key theoretical and computational components of how cyrptocurrencies are priced. New Bitcoin is created by a process of mining units called blocks. Bitcoin is built on blockchain technology – a digital ledger of transactions – which enables the currency to be traded independently from any central banking system, without risk of fake or duplicate Bitcoins being used. Instead of having a bank verify pending transactions (a “block”), miners check them and, if approved, the block is cryptographically added to the ever-expanding ledger. So the first measure we examined relates to mining difficulty. It calculates how difficult it is to find a new block relative to the past. As per the Bitcoin Protocol, the number of Bitcoin is capped at 21m (there are currently 16.7m in circulation). This means that as more people mine for Bitcoin and more blocks are created, each block is, all things being equal, worth less than the previous block. The second measure we looked at relates to the “hash rate”. This is the speed at which a computer operates when mining. To successfully mine Bitcoin, you must come up with a 64-digit hexadecimal number (called a “hash”), which is less than or equal to the target hash. The faster you can do this, the better chance you have of finding the next block and receiving payment. The third measurement was “block size”. This relates to how large the chain is at any given time, with larger chains taking longer to mine than shorter ones. And lastly we looked at the volume of transactions conducted. Any asset, in particular any currency, which is more widely used will be more valuable than one which is used less frequently. In our study, we examined data from Bitcoin’s early days – from July 2010 to November 2017. The price of one Bitcoin did not rise above US$1 until April 16, 2011, then to US$10 on June 3, 2011 and US$100 on April 2, 2013. Since then the price rise has clearly been exceptional. We then applied an accepted method that is used to detect and date stamp bubbles after they burst. In essence, this involves identifying the existence of an explosive component in a series. As the series, here the price of bitcoin, “explodes”, it runs the risk, like any explosion, of flying apart. A possibly counter-intuitive result of this approach is that if a fundamental driver and the price of an asset both show an explosive component, we might not conclude a bubble is present. A bubble is when something deviates from its fundamental value. If the fundamental value is itself growing explosively then the price would also. Think of dividends on a stock. If, somehow, these were to grow at an explosive rate we might expect to see the price do the same. While unsustainable, this is not technically a bubble. To overcome this, we then date stamp a bubble as being present when the price shows an explosive component and the underlying fundamentals do not. Here are the results of the analysis: The Bitcoin Bubbles.Authors own calculations The orange lines denote when the price is showing explosive behaviour. We also see a period where the hash rate was growing explosively – the blue columns in late 2013 and early 2014. This is also an indication of a price bubble, which went on to burst. So there are clear points where bubbles are visible – including now. The price of Bitcoin at present shows explosive behaviour in the absence of anything similar in its fundamentals. We see the price moving upwards in a manner that is not related to the technical underpinnings. It is a clear bubble. A weakness of these tests and indeed all bubble identification tests is that they take place after the bubble has burst. Even this test, which can be redone as swiftly as new data arrives, is such. Bubbles by their nature grow in a compound manner – so even a day or two delay in addressing the situation can make a bubble significantly worse. What is not yet available is an accurate advanced warning bubble indicator. In its absence, this approach may be the best. Unfortunately, we cannot use this approach to determine the extent of the bubble. There is no well-accepted model that suggests a “fair” value for Bitcoin. But whatever that level is, it is almost certain that, at present, it is well below where we are now. This article was originally published on The Conversation. Read the original article. *Brian Lucey: Professor of International Finance and Commodities, Trinity College Dublin (Disclaimer: Both authors write here in a personal capacity).

Opinion: The Bitcoin bubble ? how we know it will burst

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe&#39;s biggest bourses and a record plunge for Sterling. 
 
Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. 
 
Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. 
 
Billions were wiped from share values as Europe saw London&#39;s FTSE drop six per cent in early deals, Germany&#39;s and France&#39;s CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. 
 
Britain&#39;s big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&amp;P 500 futures were down four per cent and Japan&#39;s Nikkei ended down 7.9 per cent. 
 
The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. 
 
Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. 
 
Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. 
 
Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. 
 
&quot;It&#39;s an extraordinary move for financial markets and also for democracy,&quot; said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. 
 
&quot;The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours,&quot; he added. 
 
The shockwaves affected all asset classes and regions. 
 
The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. 
 
That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. 
 
The Bank of England said it would take all necessary steps to shield Britain&#39;s economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. 
 
Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. 
 
Recession fears 
Europe&#39;s natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. 
 
Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe&#39;s stability. 
 
&quot;Obviously, there will be large spill-over effects across all global economies if the &#39;Leave&#39; vote wins. Not only will the UK go into recession, Europe will follow suit,&quot; was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. 
 
Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. 
 
Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. 
 
As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor&#39;s warning it would likely downgrade the country&#39;s triple A rating if it left the EU. 
 
Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. 
 
Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. 
 
&quot;It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table,&quot; Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. 
 
Fed funds futures were even toying with the chance that the next move could be a cut in US rates. 
 
Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. 
 
Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. 
 
(Reuters)

The British Pound hits its lowest since 1985, the Euro slides 3.2 per cent while Sterling sinks by 10 per cent

World stocks headed for one of the biggest slumps on record on Friday, as a decision by Britain to leave the European Union triggered eight per cent falls for Europe's biggest bourses and a record plunge for Sterling. Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. Risk assets were scorched as investors fled to the traditional safe-harbours of top-rated government debt, Japanese Yen and gold. Billions were wiped from share values as Europe saw London's FTSE drop six per cent in early deals, Germany's and France's CAC 40 slump 7.5 and nine per cent and Italian and Spanish markets plunge more than 11 per cent. Britain's big banks took a $130 billion battering with Lloyds and Barclays plunging as much as 30 per cent. EMINI S&P 500 futures were down four per cent and Japan's Nikkei ended down 7.9 per cent. The British Pound collapsed no less than 18 US cents, easily the biggest fall in living memory, to hit its lowest since 1985. The Euro, in turn, slid 3.2 per cent to $1.1012 as investors feared for its very future. Having campaigned to keep the country in the EU, British Prime Minister David Cameron confirmed he would step down. Results showed a 51.9/48.1 per cent split for leaving, setting the UK on an uncertain path and dealing the largest setback to European efforts to forge greater unity since World War Two. Sterling sank a staggering 10 per cent at one point and was last at $1.3582, having carved out a range of $1.3228 to $1.5022. The fall was even larger than during the global financial crisis and the currency was moving two or three cents in the blink of an eye. "It's an extraordinary move for financial markets and also for democracy," said co-head of portfolio investments of London-based currency specialist Millennium Global Richard Benson. "The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours," he added. The shockwaves affected all asset classes and regions. The safe-haven Yen sprang higher to stand at 102.15 per Dollar, having been as low as 106.81 at one stage. The Dollar peak decline of four per cent was the largest since 1998. That prompted warnings from Japanese officials that excessive forex moves were undesirable. Indeed, traders were wary in case global central banks chose to step in to calm the volatility. The Bank of England said it would take all necessary steps to shield Britain's economy. A source told Reuters it was in touch with other major central banks. The Bank of Japan governor Haruhiko Kuroda added his bank was also ready to provide liquidity if needed to ensure market stability. Other currencies across Asia and in eastern Europe as it woke up suffered badly on worries that alarmed investors could pull funds out of emerging markets. Poland, where many of the eastern Europeans in Britain come from, saw its Zloty slump five per cent. Recession fears Europe's natural safety play, the 10-year German government bond, surged to send its yields tumbling back into negative territory and a new record low. MSCI's broadest index of Asia-Pacific shares outside Japan slid almost five per cent, while Shanghai stocks lost 1.1 per cent. Financial markets have been gripped for months by worries about what Brexit, or a British exit from the European Union, would mean for Europe's stability. "Obviously, there will be large spill-over effects across all global economies if the 'Leave' vote wins. Not only will the UK go into recession, Europe will follow suit," was the gloomy prediction of Matt Sherwood, head of investment strategy at fund manager Perpetual in Sydney. Investors duly stampeded to sovereign bonds, with US Treasury futures jumping over 2 points in an extremely rare move for Asian hours. Yields on the cash note fell 24 basis points to 1.49 per cent, the steepest one-day drop since 2009 and the lowest yield since 2012. As investors sought safer assets, the rally even extended to UK bonds, despite ratings agency Standard and Poor's warning it would likely downgrade the country's triple A rating if it left the EU. Yields on benchmark 10-year gilts fell 27 basis points to 1.108 per cent. Across the Atlantic, investors were pricing in even less chance of another hike in US interest rates given the Federal Reserve had cited a British exit from the EU as one reason to be cautious on tightening. "It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at US Bank in Portland, Oregon. Fed funds futures were even toying with the chance that the next move could be a cut in US rates. Commodities likewise swung lower as a Brexit would be seen as a major threat to global growth. US crude shed $3.00 to $47.11 a barrel in erratic trade while Brent fell as much as six per cent to $47.83 before clawing back to $48.18. Industrial metal copper sank three per cent but gold galloped more than six per cent higher thanks to its perceived safe haven status. (Reuters)

World stocks in free fall as UK votes to exit EU

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