A group campaigning for Britain to leave the European Union urged voters on Monday to back a British exit from the EU, or “Brexit”, to prevent what it called “an Orlando-style atrocity”, a message condemned by rival campaigners.
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“Risk aversion continues to drive markets ahead of the U.S. open on Monday, as investors seek safety ahead of a number of key risks events over the next couple of weeks”, said Craig Erlam, senior market analyst at Oanda. Britain’s FTSE 100 was down almost 0.7 percent at 6,075. USA shares were set to drift lower, with Dow futures down almost 0.3 percent at 17,729.00.
In the eurozone, Frankfurt’s DAX 30 index and the CAC 40 in Paris were both more than 1.5 percent down. US shares were set to drift lower, with Dow and S&P futures down almost 0.3 percent.
European shares fell 1.5% on the poll showing a 10-point difference – despite others showing a smaller margin – while money markets have now abandoned serious expectations that the US Federal Reserve could raise interest rates on Wednesday, just eight days before the United Kingdom vote.
Betting markets have lowered the chances of the country remaining in the European Union after some recent polls showed the “Leave” camp ahead, creating anxiety amongst investors. The policy board meetings later this week, and what Chair Janet Yellen will say is being closely watched.
The ORB poll for the Independent showed 55.0% said they were now backing the option to leave the European Union, against 45.0% who said they were supporting “Remain”.
The Brexit issue has dominated the market since late previous year, driving a decline of more than 10 percent in sterling on a trade-weighted basis between mid-November and mid-April. South Korea’s Kospi fell 1.9 percent to 1,979.06, Hong Kong’s Hang Seng lost 2.7 percent to 20,475.93 and the Shanghai Composite dropped 3.2 percent to 2,833.07.
On currency markets, sterling fell nearly 1 percent against the dollar after sinking by as much as 3 full cents in value on Friday.
ENERGY: U.S. crude fell 47 cents to $48.60 a barrel, having shed $1.49, or 2.9 percent, to $49.07 a barrel in NY late Friday. Data showing an increase in USA oil rigs pushed West Texas Intermediate crude down 1.09% to $48.54 per barrel and Brent down 1.09% to $48.54 per barrel at 1236 BST. Oil prices had reached 11-month highs in the last few days. The euro fell to $1.1256 from $1.1298.
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CURRENCIES: The dollar declined to 105.88 yen from 107.16 yen late Friday in Asia.
