Daily market overview – 21/06/2016
The UK EU membership referendum scheduled for June 23 could be one of the most potent sources of market volatility in 2016. In the lead-up to the vote, polling data has offered a small taste of the breakneck volatility on the horizon, Global equities had the biggest rally in three months, the pound strengthened the most since 2008 and Treasuries fell on signs the campaign for the U.K to stay in the European Union was gaining momentum and More of the same looks likely before this week’s fateful day approaches.
Gold prices ended the U.S. day session moderately lower Monday, as investor risk appetite has up-ticked to start the trading week. Some profit taking from recent gains also weighed on the safe-haven metal. Last week gold prices hit a two-year high.
Brent oil climbed $1.48, or 3 percent, to end the session at $50.65 a barrel on the Brent crude rallied about 85 percent after touching a 12-year low of $27.10 a barrel in January amid a decline in U.S. output and supply disruptions in Nigeria and Canada. The global oil benchmark traded just above $50 a barrel Monday, still less than half the level seen in 2014.
Key Market data Wednesday – June 21st:
09:00 – EUR: German ZEW Economic Sentiment.
13:00 – EUR: ECB President Draghi Speaks.