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World Stocks Leap as Fears Ease Over British Vote on EU

Posted June 20, 2016

Under Economic Issues, International Trade Issues


(Kevin Chan – CTV News)

World stock markets jumped and the pound rallied Monday as polls suggested British voters will choose to remain in the European Union in a referendum this week, easing investor worries about a possible “Brexit.” [...]

Global investors are focusing this week on Britain’s referendum on Thursday on EU membership, with results expected a day later. Market anxiety over the uncertain consequences of a British exit, including the impact on global financial markets, had been rising as support for the “Leave” side strengthened. However, three polls over the weekend showed that the “Remain” side had recovered some lost ground, giving investors more confidence to move into riskier assets. [...]

“The entire market is now focused on the U.K.’s EU referendum result,” said Margaret Yang, an analyst at CMC Markets in Singapore. “Judging by the market reaction over the last two days, more volatility is likely this week. It is expected that a vote to remain would lead to a quick unwinding of risk premium and a substantial risk-on rally, whereas a Brexit vote would have the opposite effect.” Click here to read more.

Related: Could British EU Exit Be Watershed for Global Economy? (Associated Press)