Confidence has already begun to be negatively affected, with Korean stocks and won falling on Monday along with Asian equities in China, Japan and emerging markets.
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A week ago, the same poll showed supporters of Britain’s European Union membership with a 1% lead. Seoul’s Kospi retreated 0.4 percent to 1,972.03, Hong Kong’s Hang Seng shed 0.6 percent to 20,387.53 and India’s Sensex lost 0.3 percent to 26,319.00.
Gold in euros has risen from 1,136/oz to 1,144/oz today and is up 6% in the first 9 trading days of June, from 1,080/oz to 1,143/oz, as investors diversify into safe haven gold due to concerns Britain will vote to leave the European Union. Instead, the worry is that the Fed could use language that quells expectations of a move this year at all. They argued that there would also be money left to invest in other priorities such as the NHS.
“We are also seeing a bit of nervousness across markets given the (British EU) vote comes up next week”, he added.
“Brexit will likely keep them sidelined until September”, said Chris Low at FTN Financial. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around 3 percent.
Other economists question how Economists for Brexit have modeled tariff changes in particular, as well as their underlying model of the economy, which differs significantly from those most other economists use.
“You can actually touch the feeling of uncertainty here at Frankfurt stock exchange”.
Wall Street looked set for more declines, with futures for the Dow Jones industrial average and the Standard & Poor’s 500 both down 0.2 percent.
If the polls continue to show momentum for the “Leave” campaign, the pound could revisit $1.39 on the eve of the vote, SocGen’s Tan said.
On currency markets, sterling fell nearly 1 percent against the dollar GBP= after sinking by as much as 3 full cents in value on Friday. The euro edged down to $1.1233 from $1.1293.
“The 23 June EU referendum gives a specific date when all the market’s troubles could come to a head”, he said.
Following the global debt market, the benchmark 10-year US Treasury note yield seen marching lower towards 1.50 percent mark.
NIESR said migration has a small negative impact on low-skilled Britons’ wages, and that Bank of England research suggested it had probably reduced pay for semi-skilled workers in the services sector by a total of 1 percent since 2004.
The Swiss franc, another traditional harbor in times of global financial stress, hit a three-month high against the euro EURCHF=, and the dollar gained against the euro EUR= and a basket of currencies.DXY.
Trump will likely call these developments proof that the U.S.’ 67-year old commitment to North Atlantic Treaty Organisation, backed up by 67 years of investments, has gone bad, and that Clinton mismanaged U.S.-European relations.
The yen has climbed about 19 per cent since reaching a 13-year low of 125.86 per dollar on June 5 of last year.
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