H&W in the Media

Looming Brexit vote to keep traders on edge

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Angst ahead of the U.K. vote on whether to leave the EU will likely keep stocks hanging in suspense Wednesday.

“I think the U.S. market and international markets could trade up if it looks like they’re going to stay. … If we don’t see anything significant, I think the market trades sideways ahead of that vote,” said Kevin Mahn, chief investment officer at Hennion & Walsh.

U.S. stocks closed higher Tuesday as a renewed sense that a remain vote would prevail continued for a second straight day. However, equities again ended off highs amid U.S. Federal Reserve Chair Janet Yellen’s two-day congressional testimony and a fresh Brexit poll that indicated leave recovered some momentum.

“Honestly, all these polls are dizzying,” said Peter Boockvar, chief market analyst at The Lindsey Group.

“I think the market just wants to get this vote over at this point,” he said, noting stocks will probably breathe an initial sigh of relief after the vote while questions around global growth challenges remain.

The result of the EU referendum isn’t expected until U.S. markets open on Friday. Anxiety ahead of that time and any fresh polls will likely keep traders on edge for the next two days.

“How much of ‘Great Britain going to remain in the EU,’ how much of that is already priced in, that’s kind of the question right now,” said John Caruso, senior market strategist at RJO Futures.

In the United States, data due for release Wednesday include May existing home sales and the April FHFA home price index. The existing home sales are expected to rise 1.1 percent to a 5.54 million seasonally adjusted annual rate, according to analysts polled by Reuters.

Oil inventory data from the U.S. Energy Information Administration is also due in the morning and will be watched for signs on declines in supply and production. Data from the American Petroleum Institute showed a bigger-than-expected drawdown in inventory, Reuters said. WTI futures, which rolled to August after Tuesday’s settle, reversed earlier losses in post-settlement trade. Futures for July delivery settled down 1.05 percent at $48.85 a barrel. Futures for August delivery settled 0.22 percent lower at $49.95 a barrel.


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