Instability continued on global markets overnight with bond yields in the US and Europe dipping lower, then rising, while after slumping in early trading, US shares staged an afternoon rebound.
Oil fell again, closing down more than 4% at $US46 a barrel in New York, while gold soared past $US1,300 an ounce to peak around $US1,305, before selling off to close around $US1,287 and off 0.2%.
Gold fell further in early Asian trading to around $US1,281 an ounce.
Markets in Europe fell as the Brexit vote rattled confidence for yet another day.
The assassination of a British Labour MP campaigning for the Remain camp shocked markets, saw campaigning suspended and triggered another round of questions about the damage being done to Britain by the looming vote.
The US dollar rebounded after a couple of days of weakness as the market assessed the previous day’s Fed decision not to lift rates and change in policy which seems to have pushed the next rate rise out into late 2016 or early 2017.
That saw the Aussie dollar slide from around 74.20 to 73.70 US cents.
Wall Street’s late rebound saw the ASX 200 futures market add up to 40 points, meaning a positive opening to trading later this morning. But yesterday had a positive start, but slid in afternoon trading as markets in Asia turned down, led by Tokyo where the Nikkei fell another 3% after the Bank of Japan didn’t change its monetary policy stance.
That saw the yen jump to under 104 yen to the US dollar (it rate rose back over 104 yen), which means more pressure on the country’s exporters and extra downward pressure on deflation.
The main indexes advanced for the first time in six days even as oil prices dropped to a five-week low and fears about the Brexit vote steadied. The S&P 500 closed 6.50 points, or 0.3%, higher at 2,078.00. The Dow added 92.93 points, or 0.5%, to 17,733.10. Meanwhile, the Nasdaq ended the session up 9.98 points, or 0.2%, at 4,844.91.
