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Markets could see heartbreak if Brexit is hard to do
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Loading...Wednesday is the big day for Brexit, with British Prime Minister Theresa May triggering the official separation of the U.K. from the European Union.
For the most part, traders believe the markets have long been prepared for the start of the process, which comes with May triggering Article 50, the legal framework starting the negotiations that will unwind the decades-long relationship. But regardless, they will be watching the U.K. markets and the pound and euro closer than usual.
Brexit could be anticlimactic but it will still get attention well into the U.S. trading day. "I'll be watching Brexit but I don't think it's going to have much effect. I think the negotiations will be going on for two years," said Andrew Brenner, global head of emerging market fixed income at National Alliance.
But Brenner and Cashin both said the market is watching the White House, and traders want to see more from Washington, after last week's failure to replace Obamacare.
"I think this was a turnaround Tuesday and we'll wait and see. The market wants it to look like [Washington] is getting something done. People are pushing for [Trump] to get off taxes and do infrastructure," said Cashin. He said an infrastructure spending plan could be a quick pop for the economy, and find bipartisan support.
Fed Vice Chairman Stanley Fischer told CNBC Tuesday afternoon that the Fed could raise interest rates two more times this year, and that he was weighing the failure of the last week's health care vote in his calculations. Those comments seem to dampen speculation that the Fed could get more aggressive than its current forecast of two more rate hikes this year.
CNBC
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