Investing.com - Here are the top five things you need to know in financial markets on Thursday, June 23:
1. Voting gets underway in the U.K.’s Brexit referendum
Voting got underway to determine whether the U.K. will remain a member of the European Union in a highly anticipated referendum on Thursday.
The vote on a potential Brexit was set to take place between 6:00GMT, or 7:00AM London time, and 21:00GMT, or 10:00PM in London, with results expected early Friday morning local time.
Recent polls showed that the race between the Leave and Remain campaigns was too close to call. Still, British sportsbook Betfair placed the probability of Remain at 84% based on its live odds.
2. Pound soars to 6-month highs
The pound jumped to a daily high of 1.4886 against the U.S. dollar, the strongest level since December 29. It last stood at 1.4840 during morning hours in London, up 1% for the day (GBP/USD).
Against the yen, sterling jumped 1.5% to 155.82, amid growing confidence that the U.K. will vote to remain in the European Union.
3. Global stocks rally as Brexit voting begins
U.S. stock futures pointed to strong gains at the open on Thursday, as traders kept a close eye on the U.K., where Britons have begun voting on whether to remain in or leave the European Union.
Elsewhere, European stock markets gained broadly, hovering at two-week highs, as investors bet the U.K. will vote to remain in the European Union in the closely watched Brexit referendum.
Earlier, Asian markets closed mixed in cautious trade, as investors remained on edge ahead of the U.K. vote on whether to leave the European Union.
4. U.S. data in focus
As markets await the results of the U.K. referendum, traders will also watch for a number of U.S. data points due Thursday morning.
Weekly jobless claims are expected to fall to 270,000 from the prior week's 277,000, according to market analysts. New home sales are seen declining by 8.7% in May to a seasonally adjusted annual rate of 560,000, following a sharp jump the prior month to the highest level in more than eight years. Markit's preliminary U.S. manufacturing PMI is also scheduled for Thursday morning.
Comments this week by Federal Reserve Janet Yellen were seen to have played down the chances of a U.S. rate hike in July.
According to CME Group's (NASDAQ:CME) FedWatch tool, market players are pricing in a 9.5% chance for a rate hike in July and 26% for September. Odds for a December rate increase stood at 53%.
5. Oil pushes higher in risk-on trade
Oil prices pushed higher on Thursday, as appetite for riskier assets improved amid indications that Britain would vote to remain in the European Union.
U.S. crude tacked on 54 cents, or 1.1%, to $49.67, during morning hours in New York, while Brent was up 62 cents, or 1.2%, at $50.50 a barrel.