Alpari - Analytics

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Stock Markets Rising

A rise in volatility was seen on the oil market. The price dropped from $48.6 to $47 per barrel for Brent, returning to levels seen in the first half of May. The main reason for the fall was woes about global economic growth in case of a Brexit. Oil restored to $47.8 during the Asian session. However, any belief that there’s a downward trend which presided over last week has been crushed, as it still doesn’t exist. Gold reached $1,315 per troy ounce: a maximum since August 2014. However, it soon corrected to $1,280.

However, an upward correction can be seen on stock markets which, it seems, have already incorporated all of the risks of a Brexit. The Asian markets were trading in the green zone. The Nikkei 225 rose by 1.1%. The ASX Australia was up 0.3%. The Shanghai Composite rose by 0.8%, and the Hang Seng increased by 0.7%. Futures for the S&P500 were trading at 2072; 0.1% up on the previous trading day.

An increase in volatility due to Brexit expectations can be seen on both commodity and currency markets. Yesterday the EUR/USD crumbled to 1.1130 from 1.1290, following which it restored to 1.1230. During today’s morning session the pair rose and is trading around 1.1250. Today trader attention will mostly be on ECB chief Draghi speaking.


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