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Will a “Brexit” impact markets?

Good Morning,

We’re a little tired this morning after a packed day yesterday in Perth, but hey, market was up last night (Dow + 145 points), so we should have another good day today…..

We had a great day yesterday here in Oz, with the XJO rallying + 75 points, as banks rallied and commodities provided strong support

We feel that if the RBA cuts interest rates again next week, markets will rally as investors seek higher yields…..

So which US hedge funds are shorting our banks?

We hope they are all wrong and feel a bit of “pain”, covering their shorts and sending the index higher…..

Crude oil rallied past $50.00 last night, as signs of further supply disruptions assisted markets higher….

This is good news, as oil is generally strongly positively correlated with markets…

Also in focus in the “Brexit”… and whether an exit of Britain out of the EU will impact markets…

The short answer is “absolutely” as uncertainty drives markets….

So… What's on today?

Local data: Private capex Q1, RBA assistant governor Debelle speaks at 11pm; NZ budget day; Fonterra to detail opening forecast for 2016-17 milk price

Local earnings: Aristocrat Leisure half year results

Overseas data: UK first-quarter GDP; US April durable goods, April pending home sales, Kansas City May manufacturing; G7 leaders meet in Japan.

Fed speaker: James Bullard, Jerome Powell

The SPI is up 38 points this morning.

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