Investing.com - Here are the top five things you need to know in financial markets on Thursday, June 16:
1. BoJ and SNB follow Fed’s lead with eyes on BoE
Both the Bank of Japan (BoJ) and the Swiss National Bank (SNB) followed the Federal Reserve’s (Fed) lead and their respective interest rates on hold Thursday.
Both central bank chiefs echoed Fed chair Janet Yellen’s concern over the global economy and the uncertainty ahead of the June 23 referendum on the U.K.’s membership in the European Union (EU) with fears that a decision to leave, known as a Brexit, could negatively impact not only the British economy and trade, but global financial market conditions.
The Bank of England (BoE) was also not forecast to make any changes to rates later in Thursday’s session and was expected to weigh in on the risks of the upcoming vote in the publication of its meeting minutes.
2. Brexit concern has global consequences as recent U.K. poll points to leave
An Ipsos MORI telephone poll released on Thursday revealed that 53% of Britons intended to vote in favor of a Brexit.
It was the first time in the monthly survey that the Leave campaign took the lead and followed a string of polls released this week that show the vote to remain in the EU losing ground just a week ahead of the referendum.
Economists fear a "leave" vote could unleash turmoil on global financial markets. Traders in London are readying for all-nighters after polls close late on June 23.
3. Gold soars to a 22-month high breaking through $1,300
Gold futures soared to the highest level since August 2014 in European trade on Thursday, as investors digested the latest monetary policy decisions from the Federal Reserve and Bank of Japan.
Though the precious metal later paring gains, gold for August delivery on the Comex division of the New York Mercantile Exchange jumped to an intraday peak of $1,314.35 a troy ounce, the highest level in 22 months.
4. Oil slumps to 4-week lows in risk-off trade
Oil prices added to overnight losses in European trade on Thursday, sliding to a four-week low as global concerns over a potential Brexit weighed on appetite for riskier assets.
U.S. crude oil futures lost 1.15% to $47.93, at 9:57AM GMT, or 6:03AM ET, while Brent oil traded down 1.44% to $49.11.
5. Global stocks lower as Brexit jitters fuel concern over the global economy
While both China and Australia closed slightly lower, Japan was hard hit by the BoJ’s decision stand pat on monetary policy and not provide further stimulus.
European trade also showed a risk-off attitude Brexit fears and a dimmed global outlook dampened investor sentiment.
U.S. futures pointed to a continuation of the downward trend on Thursday, after Wall Street closed slightly lower on wave of sell orders in the prior session. At 9:58AM GMT, or 5:58AM ET, Dow futures gained 0.32%; S&P 500 futures advanced 0.28% and Nasdaq 100 futures traded up 0.30%.