Tuesday, 21 June 2016

Asia Shares pause, Sterling Stands tall as Brexit vote looms

Asian shares got off to a tentative start on Tuesday, as investors paused after a rally triggered by growing expectations that British voters will opt to remain in the European Union in this week's referendum. 

Two of the latest polls released over the weekend showed the "Remain" camp in the lead, reversing a recent rise in support for pulling out and prompting a rally in global equities and the pound on Monday. 

"The polls were not supposed to influence as much as they have, but overnight we have seen a rampant position adjustment and an unwind of 'Brexit' hedges," wrote Chris Weston, chief market strategist at IG in Melbourne. 

Bookmakers' odds have also shown "Remain" gaining traction, with Betfair putting the implied probability of such an outcome at 72 percent on Monday, up from 60-67 percent on Friday.


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