Recent market rebound from Brexit-linked losses premature and risky: IIF

Tokyo

ONE month after the Brexit shock, stock and bond markets have more than recovered from their initial plunge but in so doing, they have moved ahead of corporate earnings prospects and could be setting themselves up for a further severe correction, the Institute of International Finance (IIF) has warned.

In a report on Wednesday, the Washington-based IIF, which draws upon the expertise of nearly 500 leading global banks and finance houses in membership, said that corporate fundamentals do not justify the remarkable market recovery since Britain opted on June 23 to quit the European Union.