Pre Session- Flat opening on the cards for Sensex ahead of Brexit vote
23/06/2016
Indian equity benchmarks are likely to open little changed on Thursday as traders tread a cautious path ahead of the EU referendum today which will decide whether the UK remains a part of the trade block or parts ways, weighing on risk taking appetite. Most opinion polls published on Wednesday signaled that the historic vote is too close to call, keeping investors jittery. Economists, central bankers and analysts have warned that a ‘Leave’ win may unnerve global financial markets and adversely hit capital flows to emerging markets. The CNX Nifty Index Futures for June delivery were trading up by 0.07 per cent or by 6 points to 8,210 at 10:40 AM Singapore time, signaling that Dalal Street may open little changed today. The 30-share Sensex on Wednesday retreated 47.13 points or by 0.18 per cent to end at 26,765.65 as Brexit caution weighed on sentiment, with Tata Motors, that gets one quarter of its revenue from Europe, plunging over 2.5 per cent amid concerns that a Brexit could take toll on the profitability of the company’s UK subsidiary Jaguar Land Rover.
Asian shares were trading mixed as voting was set to begin in the UK to decide the country’s EU membership. While opinion polls remained split over the outcome of the Brexit vote with three of the four polls last night showing two percentage points or less separating the two camps, odds published by bookmakers indicate a ‘remain’ win with nearly one-in-four chance of Britain leaving the EU. The odds of Brexit have fallen significantly since the murder of pro-European lawmaker Jo Cox a week ago. However, the referendum is too close to call, meaning a nervy day for investors across Asia. China’s Shanghai Composite fell, Hang Seng rose and Japan’s Nikkei 225 climbed as a weaker yen bolstered the appeal of exporter stocks. Wall Street fell on Wednesday as traders seemed jittery ahead of the Brexit vote, but upbeat US housing data eased concerns over the health of the world’s biggest economy. Sales of previously owned homes in the US soared to the highest level in more than nine years, up by 1.8 per cent to a 5.53 million annual rate in May 2016.
23/06/2016
Indian equity benchmarks are likely to open little changed on Thursday as traders tread a cautious path ahead of the EU referendum today which will decide whether the UK remains a part of the trade block or parts ways, weighing on risk taking appetite. Most opinion polls published on Wednesday signaled that the historic vote is too close to call, keeping investors jittery. Economists, central bankers and analysts have warned that a ‘Leave’ win may unnerve global financial markets and adversely hit capital flows to emerging markets. The CNX Nifty Index Futures for June delivery were trading up by 0.07 per cent or by 6 points to 8,210 at 10:40 AM Singapore time, signaling that Dalal Street may open little changed today. The 30-share Sensex on Wednesday retreated 47.13 points or by 0.18 per cent to end at 26,765.65 as Brexit caution weighed on sentiment, with Tata Motors, that gets one quarter of its revenue from Europe, plunging over 2.5 per cent amid concerns that a Brexit could take toll on the profitability of the company’s UK subsidiary Jaguar Land Rover.
Asian shares were trading mixed as voting was set to begin in the UK to decide the country’s EU membership. While opinion polls remained split over the outcome of the Brexit vote with three of the four polls last night showing two percentage points or less separating the two camps, odds published by bookmakers indicate a ‘remain’ win with nearly one-in-four chance of Britain leaving the EU. The odds of Brexit have fallen significantly since the murder of pro-European lawmaker Jo Cox a week ago. However, the referendum is too close to call, meaning a nervy day for investors across Asia. China’s Shanghai Composite fell, Hang Seng rose and Japan’s Nikkei 225 climbed as a weaker yen bolstered the appeal of exporter stocks. Wall Street fell on Wednesday as traders seemed jittery ahead of the Brexit vote, but upbeat US housing data eased concerns over the health of the world’s biggest economy. Sales of previously owned homes in the US soared to the highest level in more than nine years, up by 1.8 per cent to a 5.53 million annual rate in May 2016.
