Europe higher as oil pops and banks rally; Brexit fears ease…..06/17/2016

Europe higher as oil pops and banks rally; Brexit fears ease

31 Mins Ago

European equities were sharply higher on Friday, on the back of a positive trading session in Asia, a rally in banking stocks and a tick-up in oil prices.

The pan-European STOXX 600 came off session highs, up some 1.3 percent in afternoon trading, with most all sectors posting solid gains.

U.K. FTSE 100 popped around 1.8 percent in the afternoon, while the French CAC was up 0.8 percent, and Germany’s DAX rose 0.9 percent.

In the U.S. indexes were down on the open with the Dow Jones Industrial Average off 0.2 percent and the broader S&P500 down by the same amount.

 

Brexit fears ease

Markets have been on edge in recent days, ahead of next Thursday when Britain will vote to either stay or leave the European Union. Recent polls have shown sentiment on the debate is divided.

Campaigning for the referendum, however, was halted Thursday, after a pro-EU British lawmaker, Jo Cox, was killed while meeting with constituents. Police said they arrested a 52-year-old man in the attack on Cox, but did not know of a motive for the killing. Shortly after the news broke on Thursday, the U.K. sterling rallied from a two-month low against the euro and rose versus the dollar. According to Reuters, analysts have noted that the death may sway public opinion towards the “Remain” campaign.

“Certainly people are talking about the possibility that this [Cox’s murder] does influence the Brexit vote in favor of Remain. It is a tragic event all around. There is a sense; there is an immediate emotional reaction….It definitely is seen as part of the story, the recovery of risk,” said Alan Ruskin, global co-head of FX research at Deutsche Bank.

European equities were sharply higher on Friday, on the back of a positive trading session in Asia, a rally in banking stocks and a tick-up in oil prices.

The pan-European STOXX 600 came off session highs, up some 1.3 percent in afternoon trading, with most all sectors posting solid gains.

U.K. FTSE 100 popped around 1.8 percent in the afternoon, while the French CAC was up 0.8 percent, and Germany’s DAX rose 0.9 percent.

In the U.S. indexes were down on the open with the Dow Jones Industrial Average off 0.2 percent and the broader S&P500 down by the same amount.

 

Brexit fears ease

Symbol
Name
Price
 
Change
%Change
Volume
FTSE FTSE 6026.27
 
75.79 1.27% 639157595
DAX DAX 9641.67
 
91.20 0.95% 75227080
CAC CAC 4193.55
 
40.54 0.98% 88874899
IBEX 35 IBEX 35 Idx 8372.00
 
172.10 2.10% 216213327

Markets have been on edge in recent days, ahead of next Thursday when Britain will vote to either stay or leave the European Union. Recent polls have shown sentiment on the debate is divided.

Campaigning for the referendum, however, was halted Thursday, after a pro-EU British lawmaker, Jo Cox, was killed while meeting with constituents. Police said they arrested a 52-year-old man in the attack on Cox, but did not know of a motive for the killing. Shortly after the news broke on Thursday, the U.K. sterling rallied from a two-month low against the euro and rose versus the dollar. According to Reuters, analysts have noted that the death may sway public opinion towards the “Remain” campaign.

“Certainly people are talking about the possibility that this [Cox’s murder] does influence the Brexit vote in favor of Remain. It is a tragic event all around. There is a sense; there is an immediate emotional reaction….It definitely is seen as part of the story, the recovery of risk,” said Alan Ruskin, global co-head of FX research at Deutsche Bank.

On the oil front, prices advanced follow several negative sessions, as markets took a breather from concerns surrounding the U.K.’s referendum debate. Around the open, Brent and U.S. crude posted sharp gains, trading around $48.20 and $47 respectively.

Energy and mining stocks ticked higher, on the back of a weaker dollar and a rise in commodity prices, with Tullow Oil, Royal Dutch Shell, Anglo American and BHP Billiton trading sharply higher. Meanwhile, Randgold Resources and Fresnillo were both near the bottom of Europe’s benchmarks, despite precious metal prices posting gains during trade.

Sentiment was initially boosted in Europe following a positive trade by Afollowing a positive sia markets posted solid gains in several markets. Japan’s Nikkei 225 in particular posted gains of above 1 percent, on the back if a relatively weaker yen.

A slew of central banks announced their latest monetary policy decisions this week, including the Federal Reserve, Bank of Japan and Bank of England. All three institutions weighed in on the referendum debate, with Fed’s Yellen saying this was one of the factors that influenced the bank to hold off from raising rates, while the BOE’s Mark Carney warned that a vote for Britain to leave the EU would pose risks to the global economy.

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