Here are the top five things you need to know in financial markets on Wednesday, June 22:
1. Brexit vote poised to begin, dominating market moves
Wednesday’s session marked one day to go before the U.K.’s referendum on European Union (EU) membership, as polls showed that the race between the Leave and Remain campaigns remains tight.
London traders had been preparing throughout the week to pull an all-nighter on Thursday in order to react to the vote, while major brokers had been sending notices to clients to warn of possible trading issues due to expected high volume and volatility, especially if the vote to leave, known as a Brexit, won.
Politicians on both sides of the debate will be making their last arguments today ahead of polling stations opening Thursday at 6:00AM GMT, or 2:00AM ET. Polls will close at 21:00GMT, or 17:00ET. The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling
2. Pound hovers near six-month highs
The pound was steady against the dollar on Wednesday, which some banks have said could slump below $1.30 on a vote for Brexit, as investors decided to take to the sidelines prior to the start of voting.
Sterling had gained more than 3% in the prior three sessions as an increase in the remain camp convinced investors that the likelihood of a Brexit was fading.
GBP/USD was last at 1.4677, holding below Monday’s six-month highs of 1.4782.
3. Global stocks maintain a holding pattern ahead of Brexit vote
Global stocks traded near a one-week highs on Wednesday, as investors positioned for the results of the U.K.’s referendum and the impending impact on financial markets.
Asian stocks were mostly higher, though Japan’s Nikkei suffered from a stronger yen.
European stocks showed mixed sentiment Wednesday as investors waited to see if Britons would decide to withdraw from the 28-member bloc.
Meanwhile, U.S. futures also showed caution, pointing to only a slightly higher open. Specifically, at 9:54AM GMT, or 5:54AM ET, the blue-chip Dow futures inched up 17 points, or 0.10%, S&P 500 futures edged forward 2 points, or 0.08%, while the Nasdaq 100 futures advances 6 points, or 0.0.13%.
4. Oil rises to 2-week high on bets for U.S. supply drop
Oil prices pushed higher in European trade on Wednesday, after posting modest overnight losses, amid speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a drop of 1.7 million barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories fell by 5.2 million barrels in the week ended June 17.
U.S. crude oil futures gained 1.26% to $50.48, at 9:55AM GMT, or 5:55AM ET, while Brent oil traded up 1.17% to $51.21.
5. Yellen back to Congress, housing data on tap
Federal Reserve (Fed) chair Janet Yellen was set to return to Congress on Wednesday after appearing in front of the Senate Banking Committee the prior day.
She will repeat the same semi-annual testimony, in which she warned of the uncertainty surrounding the economic outlook but said the Fed still planned to raise rates gradually, to the House of Representatives' Committee on Financial Services.
However, market participants will watch the question and answer period after the speech to see if Yellen gives any further indications on the future path of monetary policy.
In what had been a data light week, traders will gauge the pulse of the U.S. real estate market with the April house price index at 13:00GMT, or 9:00AM ET, and May existing home sales at 14:00GMT, or 10:00AM ET.