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Sell-off abates after tumultuous week

Friday, June 17, 2016 - 01:49

World shares, oil and bond yields rise after a tumultuous week on global markets. As Kirsty Basset reports, even Europe's battered banking sector stocks were making a comeback.

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An abrupt change of sentiment on markets, as risk appetite seems to be slowly returning. European bourses rebounded 1.5 per cent, the pound rose half a per cent and oil rose for the first time in a week on Friday. European banking stocks jumped more than 3 per cent after hitting a four year low. It came as campaigning for Britain's EU referendum was suspended following the killing of a pro "Remain" MP. (SOUNDBITE)(English) CMC MARKETS ANALYST JASPER LAWLER SAYING: "I think it's the combination of the murder of Jo Cox, what it means for the referendum but also just markets going a little bit too far too fast, and fear was probably a bit exaggerated and it was always setting itself up for a sharp snapback." It's the end of a tumultuous week on markets that saw investors flock to safety. Gold reached near 2 year highs, and German bund yields turned negative. It was also a week that saw three of the major central banks report - the Bank of England, the Bank of Japan and the Federal Reserve. All of which kept interest rates on hold. (SOUNDBITE)(English) CMC MARKETS ANALYST JASPER LAWLER SAYING: "That didn't do anything to calm nerves. In fact, the fact that they stayed on hold almost shows that they're running out of tools to combat the uncertainty in markets." That fear and uncertainty may return in coming days, as Britain prepares to vote on EU membership. (SOUNDBITE)(English) CMC MARKETS ANALYST JASPER LAWLER SAYING: "Globally there's a general sense that everyone's sitting on their hands until the vote's over with." Not helping investors' nerves, the Bank of England escalating warnings that an "Out" vote could see the pound further weaken - and harm the global economy.

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Sell-off abates after tumultuous week

Friday, June 17, 2016 - 01:49