Brexit Polls Change Game For Markets; U.S. Futures Jump

Brexit Polls Change Game For Markets; U.S. Futures Jump

U.S. equities were seen adding substantial gains during premarket hours, in line with global markets. NASDAQ (INDEXNASDAQ:NDX) Futures jumped 1.28% to 4,415.25 and S&P 500 INDEX (INDEXCBOE:SPX) Futures surged 1.32% to 2,086.25.

Brexit polls come as a surprise

Weekend polls showed that the Remain campaign is once again finding majority support among Britons ahead of a Brexit referendum on Thursday this week. The surprise shift in outlook helped the British pound record sharp gains to test three-week highs at 1.4633. Sterling eased risk appetite for safe assets such as yen and gold, both of which are down this morning.

Markets across the globe witnessed positive trade for the same reasons. A growing number of investors now believe that U.K. will vote to stay in the EU on Thursday.

Oil soars; gold off peak level

The U.S. Dollar (CURRENCY:USD) traded lower against sterling and euro after Brexit poll results soothed traders that the probability of financial turmoil following referendum might not become a reality. Resultantly, investors offloaded Yen which had been rallying on the Brexit fears.

The rally in oil returned today as well. Brent crude hit above $50 a barrel level despite reports that U.S. producers are increasing rigs, which implies higher production. Commodity analysts hold the view that gains in oil will be capped going ahead if rig counts continue to increase this week.

One asset class that stands hit by the latest Brexit developments is gold, which broke session lows of $1,282.30 this morning. Buying interest in the yellow metal faded after recent polls suggested that Britain is less likely to leave the European Union.