• MTS Economic News_20160623

    23 Jun 2016 | Economic News
 



The euro gained 0.2 percent to $1.1324 EUR=, adding to an overnight gain of 0.5 percent. A slight ebb in prospects of Britain leaving the EU has helped the common currency.

The pound rose to a six-month high against the dollar early on Thursday after the latest polls supported those in favor of Britain remaining in the European Union, hours before a crucial referendum to decide the country's place in Europe.

Polls by ComRes, conducted for the Daily Mail newspaper and ITV television, and YouGov for The Times newspaper in London showed a last-minute rise in those supporting Britain to remain in the EU.

Reduced Brexit fears have helped sterling gain roughly three percent so far this week, although several poll results have been too close to call a definitive outcome.

The pound was up 0.6 percent at $1.4802 GBP=D4 after touching $1.4847, its highest since the beginning of the year.

Reuters noted, two opinion polls published late on Wednesday, a few hours before voters were due to begin to cast their votes, showed the "Remain" camp gaining momentum in the closely divided campaign.

Daily Politics reporter Ellie Price looks at the how the BBC will be covering the outcome after polls close at22:00, and hears there will be no overall result for several hours.

The polling will take place between 0600-2100 GMT on Thursday, with the results expected early on Friday.

Oil prices rose in early Asian trading on Thursday, shrugging off a smaller than expected decline in U.S. stockpiles as the market waited with bated breath for the result of Britain's "Brexit" vote.

Oil prices settled down more than 1 percent on Wednesday after a smaller-than-expected U.S. inventory drawdown and amid jitters ahead of a vote on whether Britain should stay in the European Union.

Brent crude eventually settled down 74 cents, or 1.5 percent, at $49.88 a barrel, and last traded down 73 cents at $49.89. U.S. crude fell 72 cents, or 1.4 percent, to settle at $49.13. WTI last traded down 73 cents at $49.12.

Crude futures rose early in the day, before the U.S. Energy Information Administration (EIA) reported a stockpile decline of 917,000 barrels for the week ended June 17.

While it was the fifth consecutive weekly draw for crude, the number posted by the EIA was smaller than a 1.7 million-barrel drawdown forecast by analysts in a Reuters poll. It was also about a third of the 5.2 million-barrel drop reported on Tuesday by trade group the American Petroleum Institute (API).

In Tuesday's session, crude prices settled lower but rose in after-hours trade, helped by the huge draw reported by the API.

The positive sentiment extended into early Wednesday, with futures of Brent and U.S. crude's West Texas Intermediate (WTI) both trading above the psychological $50 a barrel level at one point.

Brent crude eventually settled down 74 cents, or 1.5 percent, at $49.88 a barrel, and last traded down 73 cents at $49.89. U.S. crude fell 72 cents, or 1.4 percent, to settle at $49.13. WTI last traded down 73 cents at $49.12.


Reference: Reuters, CNBC, BCC, Bloomberg

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