Let’s hope the late polls are right and Britain will stay in the EU because if they are wrong all hell will break loose (and remember the polls were wrong in May 2015 when the forecast a win by Labour in the General Election, when it was in fact the Conservatives won) in the markets which overnight were tipping a win for ‘remain’ by rising strongly.
About 9 am the pound sank suddenly after a narrower than expected vote in favour of ‘remain’ was reported from the city of Newcastle
We should start getting a good idea from noon onwards as more votes start flowing from the London area. Early votes will come from rural areas of Britain and small towns and cities which are supposed to be faviuring leaving the EU. The final result will be known between 4 and 6 pm Sydney time
In fact Wall Street closed up strongly, as did sharemarkets across the EU; the pound rose strongly hitting a six month high, while the Aussie dollar climbed above 76 US cents. Oil edged higher and gold sold off as tensions about Brexit eased.
Stocks in Europe rose strongly, while those in Asia were mixed, but that will change today in late trading across the region if the vote is clearly for ‘Remain’.
London’s FTSE rose 1.2%, hitting a two-month high. Germany’s DAX and France’s CAC 40 rose nearly 2% and in Tokyo, the Nikkei closed up 1.1%.
Our market will start strongly with the futures market tipping a 60 plus jump for the ASX 200 – hopefully that confidence that won’t be blown up by a ‘Leave’ vote surprising everyone.
Wall Street stocks closed higher, with all three indexes rallying strongly, as investors wagered that Britain will vote to remain in the European Union.
Late polls released earlier on Thursday showed a slight preference for ‘remain’ while bookmakers also indicated a 76% probability of a vote to remain in the EU.
The S&P 500 index gained 27.87 points, or 1.3%, to close at 2,113.32, regaining the psychologically important 2,100 level. Financial stocks led the gains, advancing 2.1%.
The Dow Jones Industrial Average jumped 230.24 points, or 1.3%, to finish at 18,011.07.
The Nasdaq Composite Index climbed 76.72 points, or 1.6%, to close at 4,910.04.
And don’t be surprised if the ‘remain’ rally (if concerned) peters out in the US tonight because once the euphoria has subsided,the big question will remain – the path of US rate rises this year and next. And remember, we have our vote a week tomorrow for a dose of uncertainty.
