This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-36611512
The article has changed 30 times. There is an RSS feed of changes available.
Previous version
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Next version
Version 1 | Version 2 |
---|---|
Pound breaks $1.50 on hopes of a Remain victory | Pound breaks $1.50 on hopes of a Remain victory |
(35 minutes later) | |
The pound hit $1.50 for the first time since December on hopes that the UK has voted to remain in the European Union. | The pound hit $1.50 for the first time since December on hopes that the UK has voted to remain in the European Union. |
Sterling was given a boost after Leave campaigner Nigel Farage said it looked as though Remain had "edged" the vote. | Sterling was given a boost after Leave campaigner Nigel Farage said it looked as though Remain had "edged" the vote. |
Last week the pound fell as low as $1.40 as traders tracked polls suggesting a flagging Remain campaign. | Last week the pound fell as low as $1.40 as traders tracked polls suggesting a flagging Remain campaign. |
Earlier the FTSE 100 closed 1.2% higher to a two-month high of 6,338.1 points, with miners, banks and travel firms rising. | Earlier the FTSE 100 closed 1.2% higher to a two-month high of 6,338.1 points, with miners, banks and travel firms rising. |
Wall Street also jumped in late trading, with the Dow Jones and S&P 500 both closing 1.3% higher. | Wall Street also jumped in late trading, with the Dow Jones and S&P 500 both closing 1.3% higher. |
That was the best result for New York shares in a month, with the main measure of "fear" - the VIX volatility index - falling 18.5%, the biggest slide in six months. | That was the best result for New York shares in a month, with the main measure of "fear" - the VIX volatility index - falling 18.5%, the biggest slide in six months. |
'Dramatic' swings | 'Dramatic' swings |
Peter Cardillo, at First Standard Financial in New York, said: "The markets are the best judge of what is going to happen, and they are saying that Britain will remain. | Peter Cardillo, at First Standard Financial in New York, said: "The markets are the best judge of what is going to happen, and they are saying that Britain will remain. |
"The key is the strong jump in the pound." | "The key is the strong jump in the pound." |
Analysis: Kamal Ahmed, BBC economics editor | |
Interesting scrap of information on Reuters. The agency reports that between 21:00 and 21:30, volumes of sterling trading reached a record level for the year. | |
That's 30 minutes before the polls closed. | |
I know that at least one hedge fund carried out its own polling on referendum day. There have been reports that other funds have done similar. | |
Did some of that information get into the market early, giving traders data to trade on? | |
Of course, a poll is not a result - but the old adage is "buy on the rumour, sell on the news". | |
Sterling has had a strong day on the markets - reaching a high for the year. | |
And has certainly been powering ahead since 22:00, touching $1.50 at various points. | |
The market certainly believes this vote is only going one way. | |
Chris Saint, senior analyst at HL Currency, said: "The key issue now for currency markets is whether rising expectations that the status quo will prevail are well-placed. | Chris Saint, senior analyst at HL Currency, said: "The key issue now for currency markets is whether rising expectations that the status quo will prevail are well-placed. |
"Dramatic exchange rate swings are to be expected regardless of the result, with a sharp drop in the pound's value possible in the event of a Brexit." | "Dramatic exchange rate swings are to be expected regardless of the result, with a sharp drop in the pound's value possible in the event of a Brexit." |
European markets earlier added to the optimism, with the Dax in Frankfurt and the Cac 40 in Paris rising 1.8% and 2% respectively. | European markets earlier added to the optimism, with the Dax in Frankfurt and the Cac 40 in Paris rising 1.8% and 2% respectively. |
Brent crude rose sharply in late trading to end the day 2.1%, or $1.03 higher at $50.91 a barrel, while US crude added 98 cents to $50.11. | Brent crude rose sharply in late trading to end the day 2.1%, or $1.03 higher at $50.91 a barrel, while US crude added 98 cents to $50.11. |
Higher oil prices bolstered shares in Shell, which closed up 3.1% in London, while BP was almost 1% higher. | Higher oil prices bolstered shares in Shell, which closed up 3.1% in London, while BP was almost 1% higher. |
Gold, regarded as a safe haven, fell 0.6% to a two-week low of $1,258.86 an ounce. | Gold, regarded as a safe haven, fell 0.6% to a two-week low of $1,258.86 an ounce. |
Thursday winners | Thursday winners |
The biggest riser on the London market was British Airways owner IAG, whose shares rose 3.6% to 528p as traders expected aviation to be helped by a remain vote. | The biggest riser on the London market was British Airways owner IAG, whose shares rose 3.6% to 528p as traders expected aviation to be helped by a remain vote. |
London Stock Exchange Group ended 3% higher as its £21bn merger with Deutsche Borse looked more certain of going ahead. | London Stock Exchange Group ended 3% higher as its £21bn merger with Deutsche Borse looked more certain of going ahead. |
Saxo Bank's head of FX strategy, John Hardy, said: "Everybody is a bit shell-shocked at the way the market has moved so aggressively (toward the UK remaining in the EU). | Saxo Bank's head of FX strategy, John Hardy, said: "Everybody is a bit shell-shocked at the way the market has moved so aggressively (toward the UK remaining in the EU). |
"If you are stuck with a short position, you are being forced out without even knowing the result, but what this also means is that a Brexit result is now a catastrophic risk." | "If you are stuck with a short position, you are being forced out without even knowing the result, but what this also means is that a Brexit result is now a catastrophic risk." |