Article / 17 June 2016 at 6:59 GMT

Morning Markets: Referendum campaign on hold, GBP up



  • ECB speeches (1245, 1500 GMT)
  • US May Building Permits & Housing Starts (1230)

Britain's parliament is in mourning after the murder yesterday evening of Jo Cox, a Labour MP who was a prominent campaigner for remaining in the EU and an advocate for the plight of refugee children from Syria. Campaigning by both the Leave and Remain sides has been suspended at least until Saturday.

The murder, by a suspect reported to have shouted "Britain First" as he assaulted Ms Cox, throws the closely-run referendum into disarray with less than a week to go before polling booths open. Markets responded to the atrocity overnight by bidding up the pound sterling on the assumption that the murder might draw voter support away from the Leave side.

Elsewhere, commodity weakness, including sharp declines for gold and oil, pushed the USD broadly higher after US equities closed higher and their Asian counterparts mostly followed suit.

Japan’s finance minister escalated his concern about a surge in the yen, calling for coordination with his counterparts to address what he described as disorderly moves in the currency market, Bloomberg reports

Market signals

Asian session

  • The murder of Jo Cox was seen today as swaying sentiment towards "remain" camp
  • The EUR climbed with sterling after odds indicated a reduced chance of Brexit
  • Japan's government kept its assessment of the economy unchanged this month
  • The Cabinet Office did say consumer prices were "rising at a slower pace"
  • Japanese Finance Minister Taro Aso was concerned about " speculative" currency moves
  • Business NZ manufacturing for May was 57.1 (it was previously 56.5)
  • WTI rose 0.7% to $46.52/barrel, and Brent crude climbed 1% to $47.66/b
  • Gold advanced 0.1% to $1,279.70/oz following wild swings overnight
  • Asian stocks rebounded from a three-week low - the MSCI Asia Pacific Index was up 0.7%
  • The Nikkei 225 rebounded as the yen trend paused - the Nikkeii rose 1.1% at 0510 GMT
  • The Shanghai Composite added 0.76% at 0501 GMT, and the Hang Seng rose 0.68%
  • The Mumbai Sensex was up 0.53% at 0506 GMT
  • The ASX/S&P 200 was up 0.16% at 5162 pints at 0527 GMT

Forex ahead

  • GBPUSD strengthened 0.4% to $1.4255, after erasing a slump of more than 1.3%
  • In Asian trade JPY was little changed at 104.22 per dollar

From the Floor

Day trader’s dream "The focus from here remains on extreme intraday volatility," says Hardy

Shopping the Nikkei "It's time to buy Japanese equities ahead of the Brexit," says Garnry

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion


The death of a British MP may have stopped campaigning, but the news is all about Brexit, now with the ECB and the IMF chaiming in, says Juhani Huopainen.

Collateral damage
The Swiss National Bank said Brexit “may cause uncertainty and turbulence to increase” in already fragile financial markets. Max McKegg explains why that could be an understatement.

Reining it in
The Bank of Japan’s decision to leave its stimulus unchanged came just after the Fed reined in its projections for rate increases this year, as Saxo's Aussie team reports.

Pole position
There remains one full week to the UK's Brexit referendum, and Saxo Bank chief economist Steen Jakobsen believes that the "move" will be dictacted by the market's net positioning. 


Westminister is in mourning after the murder of Labour MP Jo Cox. Photo: iStock

Morning Markets goes out on the TradingFloor platform at 0700 GMT, Monday to Friday.
Click here
to make sure you're up to date with the latest developments.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail