UK and international media are abuzz with updates as we approach the coronation in Britain of a monarch for the very first time in this century. This will be the first British coronation to be broadcast in color on television and live tweeted around the world. What will the market reaction be?
The UK will also have an additional holiday on Monday which usually reduces trading volumes. London is still Europe’s largest financial hub despite Brexit. But coincidentally many countries in Europe are celebrating the end WWII with public holidays, even though stock markets will likely be open. The European session is therefore expected to have a lower trading volume as the majority of major corporate and news reports were postponed until Tuesday.
What is likely to move the market in 2019?
Generally, large-scale public events like this one tend to boost positive emotions. A history of market reactions to emotional public events shows that traders are not cold, methodical and calculating. The Queen’s Jubilee, the previous event comparable to the upcoming coronation, saw general sentiment support the pound in…