🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

GLOBAL MARKETS-Stocks rise, safe havens retreat as Brexit worries ebb

Published 20/06/2016, 09:42 pm
© Reuters.  GLOBAL MARKETS-Stocks rise, safe havens retreat as Brexit worries ebb
EUR/USD
-
USD/JPY
-
UK100
-
XAU/USD
-
JP225
-
GC
-
LCO
-
ESZ24
-
1YMZ24
-
NQZ24
-
DE10YT=RR
-
US10YT=X
-
FTEU3
-
MIAPJ0000PUS
-
DXY
-
SX7P
-

* Polls show "In" gaining momentum before referendum

* European stocks add nearly 3 percent, Asian shares gain

* Sterling rises strongly, safe-haven yen falls

* Low-risk debt yields rise, gold drops as safety bid eases

* Brent crude nears $50 a barrel on reduced Brexit fear

By Nigel Stephenson

LONDON, June 20 (Reuters) - Global stocks rose sharply on Monday and sterling strengthened broadly while safe-havens including the yen and gold retreated, after polls showed support for Britain staying in the EU regaining momentum before Thursday's referendum.

Sterling has been at the sharp end of worries Britons will vote to leave the European Union, and the easing of those concerns pushed the pound up 1.9 percent against the dollar - on track for its biggest daily gain since October 2009 - and more than 2 percent versus the yen.

Share prices, which fell globally in recent days on prospects of Britain quitting the bloc as some polls showed the "Leave" campaign ahead, rose strongly.

Wall Street looked set for a positive open, with index futures ESc1 1YMc1 NQc1 up 1.2-1.3 percent.

The pan-European FTSEurofirst 300 index .FTEU3 added 3.7 percent, led by a 4.5 percent rise in banks .SX7P , while Britain's blue-chip FTSE 100 index .FTSE chalked up a 3.2 percent gain.

For Reuters new Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 1.7 percent. Japan's Nikkei .N225 climbed 2.4 percent as the yen lost ground.

Two weekend polls showed "In" regaining the lead and another showed the "Out" campaign's lead narrowing, though the overall picture is of an evenly split electorate. Bookmakers' odds have shown those wishing to stay in the EU ahead and Betfair put the implied probability of a vote to "Remain" at 72 percent on Monday, up from 60-67 percent on Friday.

Campaigning resumed on Sunday, having been suspended for three days after British lawmaker Jo Cox was killed in the street in her constituency on Thursday.

Sterling rose as far as $1.4671 and was last up 1.9 percent at $1.4628 GBP= , having hit a two-week low of $1.4013 on Thursday. It soared 2.3 percent to 153.00 yen GBPJPY= and 1.5 percent against the euro to 77.36 pence EURGBP= .

"The momentum has changed, and perhaps this is the first sign of what a lot of the polling experts had been suggesting, which is that the 'don't know' portion was going to be crucial and historically there tends to be a shift towards the status quo in the final days before a referendum," Bank of Tokyo-Mitsubishi UFJ's European head of global markets research, Derek Halpenny, said.

"I think that's what the market is reacting to."

EURO

The euro, which has also suffered due to Brexit worries, strengthened 0.4 percent to $1.1326 EUR= , having risen as far as $1.1382.

The yen, often sought by investors in times of market tension, fell 0.4 percent to 104.54 per dollar JPY= . The dollar fell 0.6 percent against a basket of currencies .DXY .

Yields on low-risk government bonds, another asset sought in troubled times, rose. U.S. 10-year Treasuries US10YT=RR yielded 1.66 percent, up 4.6 basis points, after hitting a four-year low of 1.518 percent on Thursday.

German 10-year yields DE10YT=TWEB were close to 0.05 percent, up from a record low of minus 0.037 percent on Thursday.

Oil prices, which have also been under pressure from Brexit nerves, extended Friday's gains. Brent crude LCOc1 topped $50 a barrel for the first time since June 14. It last traded at $50.08, up 91 cents on the day.

Gold XAU= , another safety play, fell 1.4 percent to just below $1,280 an ounce. It rose 1.5 percent on Friday for its biggest single-day gain since June 3.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.