How Brexit could stress out markets this week

Stocks and risk assets could continue to get smacked and currency volatility remain at extreme highs this week as investors weigh the fallout of the U.K. Brexit vote.
Analysts warn the market moves in stocks and bonds and other assets could also be more exaggerated than normal, as fund managers around the world juggle positions, selling both winners and losers ahead of the end of the second quarter Thursday.

There's going to be aftershocks in the markets for the next few days, but what makes it more tricky is it's running up against quarter end and also this is the quarter end that runs into the long Fourth of July weekend. So there the willingness and the ability to warehouse risk is not going to be that high...for market makers especially,"

The Brexit vote has had a direct consequence on Japan, with the yen surging Friday, reaching a level of 99 to the dollar temporarily. The yen weakened slightly Sunday evening, as Japanese Prime Minister Shinzo Abe instructed Finance Minister Taro Aso to watch the currency markets "ever more closely" and take steps if necessary. Traders have been speculating Japan would intervene to weaken its currency if it went below 100.