Summer of discontent? Events in June that could shake markets

LONDON (Reuters) – May was a manic month for markets but brace yourself for June.

An unprecedented summit between North Korea and the United States is back on the agenda, and there are other events on the radar to potentially convulse world markets — from Turkish elections to a Swiss referendum on a new money system.

Here are six events, listed chronologically, that investors will be watching in June:

POSSIBLE SWISS SHOCK – JUNE 10

Switzerland holds a referendum on June 10 on whether to introduce a sovereign money system that would shake up how its banks operate. The measure, if passed, would bar commercial banks from creating money every time they make a loan.

To view a graphic on Another Swissie shock in store?, click: CHF=EBS since money-printing will not be backed by assets. It could also hurt the profits of Swiss banks such as UBS (UBSG.S) and Credit Suisse (CSGN.S).

Opinion polls show just 35 percent support for the change, but as Brexit and the 2016 U.S. election showed, electoral upsets can happen.

FED UP – JUNE 12-13

On June 12-13, the U.S. Federal Reserve should deliver what will be the second of three interest rate hikes expected for this year. Rates should rise to 1.75-2.0 percent.

To view a graphic on Fed’s second 2018 hike?, click: UBS Group AG15.315

To view a graphic on Turkey interest rates, click: TRY=. A recent 3 percentage point emergency increase in interest rates was almost immediately undermined by Erdogan, a self-confessed “enemy of interest rates”.

The central bank meets formally on June 7 and could take further steps to stabilize the currency

BREXIT BREAK?

With time running out for Britain to secure a deal before exiting the European Union next March, diplomats are hoping an EU summit on June 28-29 could break the deadlock.

To view a graphic on Another Swissie shock in store?, click: GBP=.

The EU says London is yet to come up with a viable solution for the Irish border — the fear is that reinstating a physical border, including for customs, between EU-member Ireland and Britain’s Northern Ireland province could revive violence there.