The probability of leaving the EU at the end of the British referendum is as high as 87%

November 10, 2022

On the morning of the 24th Beijing time, US stocks closed sharply higher on Thursday. The results of the referendum in the UK are about to come out, and investors generally expect the UK to stay in the EU. US economic data further boosted market sentiment.

Hexun.com According to the US media report, in the face of the confusion caused by the UK's withdrawal from the EU, the gaming market has not only provided recreational objects, but also became a source of information close to the people's real thoughts.

According to the latest odds of a gaming company, the probability of a British referendum as “remaining in the EU” is 87%.

Recently, the UK's stay in Europe is seriously skewed. If you leave £9, the UK can only earn £2 in the EU. Over time, the odds are getting more and more inclined. According to the odds, voters are likely to support the UK to stay in the EU close to 90%.

Mike Smithson, founder of the betting website PoliticalBetting.com, said, "This is the biggest political gamble in the world, unprecedented."

Mike Smithson, founder of the betting website PoliticalBetting.com, said, "This is the biggest political gamble in the world, unprecedented."

The US media said that regardless of the outcome of the Brexit referendum, the gaming industry has become the biggest winner.

At 16:00 on June 23rd (04:00 on June 24th, Beijing time), the Dow Jones Industrial Average rose 230.34 points to 18,011.07 points, or 1.29%; the Standard & Poor's 500 Index rose 27.87 points. At 2,113.32 points, the increase was 1.34%; the Nasdaq Composite Index rose 76.72 points to 4,910.04 points, an increase of 1.59%.

The three major US stock indexes rose, and the financial and raw materials sectors led the gains. The Chicago Board of Trade's VIX index, which measures market panic, fell about 14% to 18.17. The index broke through 20 points yesterday.

The US initial jobless claims data fell to its lowest level in eight weeks last week, indicating that the labor market is strong, and the market sentiment is also optimistic.

The results of several polls announced earlier show that the "Leaving Europe" camp is leading. The results of the Ipsos Mori telephone poll released on Thursday morning showed that the European camp was ahead of the Brexit camp by 52% to 48%. In addition, Populus's online poll results also showed that the European camp led by 55%.

Joe Higgins, executive director of TIAA Global Asset Management, said: "The performance of the global market on Thursday proved that the market is generally expected to stay in the EU." He pointed out that global stock markets climbed on Thursday, government bond yields rose To a three-week high, gold futures prices tumbled and the pound exchange rate hit its highest level in six months.

Higgins said: "If the UK chooses to leave the EU, market volatility will suddenly soar."

Some of the polls released earlier showed that the pros and cons of the Brexit referendum are still fiercely competitive, but the odds of the bookmakers are expected to be more likely to be the UK's stay in Europe, with a probability of 76%.

Randy Frederick, managing director of Charles Schwab, said: "There will be a rebound after the release of pressure in the next few weeks, but the factors that have been suppressing the market will still limit the upside of the rebound."

Recently, the United States has been suppressed by factors such as weak corporate earnings and uncertainty in the Fed’s policies.

Radio stations do not conduct export polls that are usually practiced, so investors must wait for the exact results to be announced in the middle of the night and tomorrow morning in London time. The final result is expected to be released early Friday morning in the UK, about 2-3 am Eastern Friday.

Lee Wild, head of Interactive Investor's stock market strategy department, said: "The impact of the Brexit referendum on the financial market must not be underestimated. The poll tells us that the two sides are evenly matched, but a lot of hot money will definitely not stand, and the stock market will always Continue to rise this weekend."

Wilder said "However, it is the time for the Europeans to win and the feast to end. In the long run, investors will remember the poor performance of the global economy, the slowdown of the Chinese economy and Donald Trump. May be in the White House and other threats."

At the same time, the financial sector has also been boosted by the increase in government bond yields. It is generally believed that an increase in the yield of government bonds can increase the profitability of the banking industry. Many analysts believe that if the UK stays within the EU, it will reduce the uncertainty in the global market, thereby increasing the yield of government bonds.

State Street Bank analyst Michael Arone said that financial stocks have also been driven by some “bargain-hunting” transactions. He pointed out that with the recent decline in the Fed’s interest rate hike expectations, the financial sector has already seen a large discount relative to the broader market.

In addition, the Fed will announce the results of the banking industry's stress test after the close on Thursday.

Other economic data, the US Department of Labor released a report on Thursday, the week of June 18, the number of US initial jobless claims fell 18,000 to 259,000, an eight-week low, indicating that the US labor market is still stable.

This figure is better than the average of 270,000 economists surveyed by MarketWatch. This is the number of US initial jobless claims for the 68th consecutive week below the 300,000 mark, the longest period since 1973.

The average number of jobless claims in the past four weeks fell by 2,250 to 267,000. By removing the effects of inter-annual volatility, the four-week average is often seen as a more accurate indicator of the underlying trends in the labor market compared to weekly data.

The Chicago Fed’s May US economic activity index fell sharply on Thursday, mainly due to weak manufacturing. Both employment and consumer spending have fallen, once again proving that economic performance is inconsistent, which is confusing for Fed policymakers.

The Chicago Fed’s May National Economic Activity Index fell to -0.51 from +0.05 in April. The index's four sub-indices performed less than April, and both became a drag on the May index to negative.

The US Commerce Department reported on Thursday that the US new home sales in May (seasonally adjusted annualized figures) was 551,000, which was lower than the average of 560,000 economists surveyed by MarketWatch. In addition, the number of new home sales in April was revised down from the last announcement of 619,000 to 586,000.

New home sales data is highly volatile and will usually be substantially revised. But the overall trend in US new home sales is rising. The number of new home sales in May this year increased by 8.7% compared with the same period of last year. The sales volume of new homes in 2016 has increased by about 8% compared with the same period of last year.

After the close on Thursday, Dallas Fed President Rob Kaplan will speak at New York University.

Shares in the stock market, Red Hat (RHT) shares fell, after the company released a pessimistic expectation of full-year results.

Bank of America (BAC) shares climbed, after news that the company is close to US regulators to settle a case.

The Bunno Bookstore (BKS) received attention, and the company announced on Wednesday that the loss in the last quarter of the previous fiscal year expanded.

Accenture (ACN) announced that its third-collection revenue exceeded expectations and its earnings were in line with expectations.

Tesla (TSLA) shares have fallen, and investors are still carefully considering the company's explanation for the sudden acquisition of SolarCity (SCTY).

Blackberry (BBRY) shares rose slightly, getting rid of the impact of weak earnings.

Macy's (M) shares rose sharply after the company announced that Jeffrey Gennette will replace Terry Lundgren's CEO position in the first quarter of 2017.

With the referendum in the UK, European stocks closed higher on Thursday. Investors generally expected that the results of the UK referendum would remain in the EU. The main stock indexes fell back at a one-high high in the afternoon, but eventually returned to high levels in the late session. Today, the leading sector in Europe is mining stocks, and the international market copper price has hit a new high since May 6.

The pan-European Stoxx 50 index rose 1.31% to close at 3038 points. Germany's DAX 30 index rose 1.80% to 10252.5 points; British stocks FTSE 100 rose 1.27% to 6341 points; French stock CAC 40 index rose 1.99% to close at 4467.3 points. The pan-European Stoxx 600 index and the FTSE Eurostar 300 index both rose by more than 1%.

Asian markets closed mixed. After the results of the Ipsos-Mori poll showed that the European Union led the way, the British pound exchange rate climbed to 1.4947, hitting a new high in 2016.

The US dollar fell against most major currencies, and the ICE dollar index fell 0.5% to 93.229. Crude oil futures prices are higher. Gold futures prices fell.

US initial jobless claims last week hit an eight-week low

According to a report released by the US Department of Labor on Thursday, the number of US initial jobless claims fell by 18,000 to 259,000 in the week of June 18, an eight-week low, indicating that the US labor market is still stable. This figure is better than the average of 270,000 economists surveyed by MarketWatch. This is the number of US initial jobless claims for the 68th consecutive week below the 300,000 mark, the longest period since 1973.

The average number of jobless claims in the past four weeks fell by 2,250 to 267,000. By removing the effects of inter-annual volatility, the four-week average is often seen as a more accurate indicator of the underlying trends in the labor market compared to weekly data. In the week ending June 11, the number of US continuing claims for unemployment benefits fell by 20,000 to 2.14 million.

The latest poll shows that the UK stay in Europe is 10% ahead of the camp

The latest polls released by market research firm Populus on Thursday showed that the support rate of the UK's "Leaving Europe" camp is still ahead of the "Brexit" camp. The agency’s online survey of 4,700 respondents showed that the “Leaving Europe” camp support rate was 55% and the “Brexit” camp support rate was 45%.

The UK will hold a referendum on EU status issues on Thursday. The results of the first vote counting area are expected to be announced around 7:30 am Eastern Time (19:30 pm on Thursday, Beijing time). The national vote count will be announced around 14 pm on Thursday (2 am Beijing time on Friday).

Gold futures prices closed down 0.5% on Thursday, falling for 5 days

In the context of the historic Brexit referendum in the UK and the general rise in global markets, gold futures prices closed down for the fifth consecutive trading day on Thursday, maintaining their lowest level in two weeks.

Gold futures for August delivery on the New York Mercantile Exchange fell $6.90, or 0.5%, to close at $1,263.10 an ounce. Gold futures prices have fallen by 2.7% in the past five trading days.

Despite the tension in the Brexit referendum, Ipsos Mori's poll for the British Standard Evening News shows that 52% of British voters support the UK's “Leaving Europe” and 48% of respondents support “Brexit”. After the results of this poll were announced, the European stock market and the British pound continued to climb.

US oil closed 2% higher than 50 US dollars, oil closed up 2.1%

US crude oil futures prices closed above $50 a barrel on Thursday, the highest closing price in two weeks. The expectation that the UK will stay in the EU will calm the previous tensions. The possibility of Britain leaving the EU was once tense because investors worried that Brexit would have an impact on global financial markets and the economy.

West Texas Intermediate (WTI) futures for August delivery on the New York Mercantile Exchange rose 98 cents, or 2%, to close at $50.11 a barrel, the first time since June 9 that it closed above $50. Brent crude on the London Intercontinental Exchange closed up $1.03, or 2.06%, to $50.91 a barrel.

European stocks closed higher by 1.3%, and the market is optimistic about the UK's stay in Europe.

European stocks closed higher on Thursday. Investors generally expected that the results of the UK referendum would remain in the EU. The main stock indexes fell back at a one-time high in the afternoon, but eventually returned to high levels in the late session. Today, the leading sector in Europe is mining stocks, and the international market copper price has hit a new high since May 6.

At 23:30 Beijing time, the pan-European Stoxx 50 index rose 1.31% to close at 3038 points. Germany's DAX 30 index rose 1.80% to 10252.5 points; British stocks FTSE 100 rose 1.27% to 6341 points; French stock CAC 40 index rose 1.99% to close at 4467.3 points. The pan-European Stoxx 600 index and the FTSE Eurostar 300 index both rose by more than 1%. European stocks have soared for the fifth consecutive trading day, with major stock indexes climbing to a two-week high.

(Editor: Sun Qingyang HX014)

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