What the Latest Brexit Poll Today Means for Investors in 2016

Andrew Cummings
June 15, 2016

NY markets were also lower for a fourth consecutive session amid polls that Britain may well vote to leave the European Union in next week's referendum, a move informally known as the Brexit.

The pound has continued its slide against other major currencies and the FTSE 100 has slumped below the 6000 barrier, as a growing number of polls suggest the United Kingdom is on course to leave the European Union following next week's referendum.

However, there has been a discrepancy between telephone and online polls, suggesting problems in methodology; online polls have tended to put Leave ahead, while phone polls have put Remain in front.

Investors, meanwhile, for the first time accepted negative returns for the privilege of owning rock-solid German government bonds as fears of a possible Brexit and economic worries caused a rush to the safety of German debt. Investors are waiting to see if MSCI agrees to include the latter in its exclusive list, which would make it more appealing to big-name investors.


"This (the referendum) has rattled a lot of financial and commodity trader/investors with money seemingly starting to flow to the so-called safe-haven US dollar until the dust settles and the voting is concluded", said Dominick Chirichella, senior partner at the Energy Management Institute in NY.

According to a poll of polls, support for Brexit is now at its strongest since records began a year ago.

In London, the FTSE fell 2% to close at 5,924 - and other European markets also ended the day in the red, including the CAC 40 in France and Germany's DAX.

Stocks fell 3.5% in Japan, 2.5% in Hong Kong, 2% in Europe and 1.2% in the United Kingdom. However, according to the Guardian, Jeremy Corbyn will today drastically change his approach by urging his party's supporters to vote to remain.


As stocks declined, USA government bond yields remained at their lowest levels since 2012 as investors sought safety ahead of the Fed meeting and the vote in Britain.

The dollar also fell to one-month low of 106.075 yen, and last stood at 106.26 yen (JPY=), down 0.6 percent so far on the day.

Writing in the Daily Telegraph, he argued that Brexiteers' focus on immigration and the lack of controls over our borders was paying off.

This figure does not count the number of European Union migrants who leave, which reduces the net inflow to 184,000, similar to the number of non-EU migrants Britain chooses to admit.


 

 

Other reports by iNewsToday

FOLLOW OUR NEWSPAPER