More hope than fear as markets recover

21 June 2016 - 09:55 By Bloomberg, Reuters

Bulls rushed back into world markets yesterday after three weeks of heavy selling as polls showed that most Britons back staying in the EU. The rand strengthened as much as 2.5% against the dollar, buoyed, along with other emerging market currencies, by lessening fears of Britain voting for Brexit.JSE stocks were up on the day, with the benchmark Top40 index gaining 1.6%; the all-share index added 1.4%.The rand rallied to a session high of 14.8155/$, compared with Friday's close of 15.1950/$.The rand's gains reflected stronger global stocks and a retreat into "safe haven" assets such as gold and the yen after polls showed support for Britain staying in the EU regaining lost momentum before the referendum on Thursday."Brexit has been playing a massive role in the strength of the market," Capilis Asset Managers' head of foreign exchange, Giacomo Bonavera, said.Government bonds tracked the currency higher yesterday and the yield on the 2026 benchmark fell 8.5 basis points to 8.98%, its lowest in seven weeks. Bond prices rise when yields fall.All major Western Europe markets climbed, with the UK's FTSE 100 adding 3.4%. The S&P500 in the US jumped the most in four weeks. ..

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