NEW YORK/LONDON Gold hit its highest in nearly six weeks on Tuesday, rising on worries about a potential British exit from the European Union and expectations the U.S. Federal Reserve will not raise interest rates at its June meeting. US stocks are solidly higher early Monday, June 6, 2016, as energy companies rise along with the price of oil.
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Stocks in the US and other global markets fell for a fourth day Tuesday as jittery investors await for the Federal Reserve’s decision on interest rates and anxious about Britain’s expected close vote on whether to leave the European Union.
On stock markets the FTSE 100 extended its losing streak and was 1.2% lower in early afternoon trading at 5972 – its lowest level in four months – while losses were heavier in Germany and France.
KEEPING SCORE: The Dow Jones industrial average fell 100 points, or 0.6 percent, to 17,631 as of 12:15 p.m. The Federal Reserve is expected to keep interest rates on hold for at least another month when it starts a two-day meeting later in the day.
A pro-Brexit flag flies as Britain’s opposition Labour Party today scrambled to make the case for Europe to its members as world stock markets slipped amid concern over a British exit from the European Union in a knife-edge referendum next week. Polls show the vote could go either way and investors are starting to worry about the consequences.
Highlighting the grave concerns of investors over the possibility of a vote to exit the European Union, called as “Brexit”, instability in the British pound reached its maximum in around 20 years, surpassing the heights seen when Lehman Brothers, US investment bank, bankrupted in 2008 economic crisis. The repercussions, however, are not clear and investors are reacting to the general uncertainty over the situation.
Opinion is divided on whether the Bank of Japan will add to its stimulus when it finishes its own gathering Thursday, while the same day the Bank of England is widely expected to hold rates at 0.5 percent. “Momentum appears to be stalling after a solid start to 2016”, said Mizuho Bank in a report. Seoul’s Kospi retreated 0.3 per cent to 1,973.20, Hong Kong’s Hang Seng shed 0.3 per cent to 20,452.05 and India’s Sensex lost 0.1 per cent to 26,373.33. Benchmarks in New Zealand, Singapore and the Philippines also declined. The Standard & Poor’s 500 index fell 3.74 points, or 0.2 percent, to 2,075.32 and the Nasdaq composite fell 4.89 points, or 0.1 percent, to 4,843.55.
ENERGY: Benchmark U.S. crude dropped 60 cents to $48.28 per barrel on the New York Mercantile Exchange.
The futures of Brent crude oil declined by 69 cents to $49.66 per barrel at 0842 GMT, falling for the fourth consecutive day.
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Sterling fell sharply again yesterday (Monday) as currency markets remain volatile in the face of a looming United Kingdom vote on its membership of the EU.
