Analysts at Westpac offered a market Market Wrap pre Brexit.
Key Quotes:
"Global market sentiment: Sentiment was positive overnight, perhaps expecting the UK referendum to result in a “remain” vote. Voting closes in two hours and most bookmakers are implying a chance of leaving of between 15% and 20%. The S&P500 is up 1.0%, the Eurostoxx 2.0%. Commodities, US interest rates, and the AUD and NZD are all higher.
Interest rates: The US 10yr treasury yield rose from 1.69% to 1.75%, the 2yr slipped from 0.75% to 0.79%. Market pricing for near-term Fed hikes firmed, the 27 July meeting now given a 10% chance, September at 35%.
Currencies: The US dollar index (DXY) is slightly lower. EUR rose from 1.1320 to 1.1421 before retracing to 1.1350. GBP fluctuated between 1.4750 and 1.4950 but is currently at 1.4800 – almost unchanged on the day. USD/JPY rose from 104.04 to 106.04, the yen underperforming. AUD rose from 0.7520 to 0.7603 – a two-month high. NZD rose from 0.7180 to 0.7254 – a one-year high. AUD/NZD rose from 1.0460 to 1.0500."
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