Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Brexit vote dominating markets
1. Brexit vote dominating markets
Wednesday’s session marked one day to go before the U.K.’s referendum on European Union (EU) membership, as polls showed that the race between the Leave and Remain campaigns remains tight.
London traders had been preparing throughout the week to pull an all-nighter on Thursday in order to react to the vote, while major brokers had been sending notices to clients to warn of possible trading issues due to expected high volume and volatility, especially if the vote to leave, known as a Brexit, won.
Politicians on both sides of the debate will be making their last arguments today ahead of polling stations opening Thursday at 6:00AM GMT. Polls will close at 21:00GMT. The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling.
2. Stock market overview
2. Stock market overview
U.S. stock futures are flat and European stocks are mixed in early trade.
Investors are waiting for another round of testimony from the head of the Federal Reserve, Janet Yellen. They're also pausing for breath before the U.K.'s historic referendum Thursday on whether to exit the European Union. Opinion polls show Britain is split down the middle over a decision that could have huge economic consequences.
Asian markets ended the day mixed, but markets in China posted healthy gains. The Shanghai Composite was the standout performer of the day after rising by nearly 1%.
3. GBP near six-month highs
3. GBP near six-month highs
The pound was steady against the dollar on Wednesday, which some banks have said could slump below $1.30 on a vote for Brexit, as investors decided to take to the sidelines prior to the start of voting.
Sterling had gained more than 3% in the prior three sessions as an increase in the remain camp convinced investors that the likelihood of a Brexit was fading.
GBP/USD was last at 1.4677, holding below Monday’s six-month highs of 1.4782.
4. U.S. housing data on tap
4. U.S. housing data on tap
Federal Reserve chair Janet Yellen was set to return to Congress on Wednesday after appearing in front of the Senate Banking Committee the prior day.
She will repeat the same semi-annual testimony, in which she warned of the uncertainty surrounding the economic outlook but said the Fed still planned to raise rates gradually, to the House of Representatives' Committee on Financial Services.
However, market participants will watch the question and answer period after the speech to see if Yellen gives any further indications on the future path of monetary policy.
In what had been a data light week, traders will gauge the pulse of the U.S. real estate market with the April housing price index at 13:00GMT, and May existing home sales at 14:00GMT.
