Investing.com - Here are the top five things you need to know in financial markets on Tuesday, June 14:
1. Brexit fears rattle markets as Leave campaign takes lead
Investors’ nerves remained on edge as the Leave camp appeared to be gaining momentum ahead of the June 23 vote on a potential British exit from the European Union, or Brexit. According to a YouGov poll for The Times released on Monday, "Leave" held 46% support compared with 39% support for "Remain."
Two separate polls from ICM also showed the Brexit lead widening
2. German 10-year Bund yields turn negative for first time in history
Germany's 10-year bond yield dropped below zero for the first time in history on Tuesday, as demand for safe-haven assets mounted amid growing anxiety over the U.K. referendum.
Specifically, the Bund yield fell to an all-time low of -0.026%.
The negative yield meant traders were willing to pay the German government to lend it money.
3. Retail sales, the final piece of the puzzle as Fed meeting kicks off
Markets were also anxious as the Federal Reserve (Fed) kicked off its two-day policy meeting on Tuesday.
Although, expectations are for the U.S. central bank to once again hold on policy tightening, market participants will focus on the publication of Fed officials’ expectations for the future path of rate hikes.
Tuesday will also see the final piece of key data for the Fed to digest before announcing its decision with the publication of May retail sales at 12:30GMT, or 8:30AM ET, to measure the strength of the American consumer spending.
4. Global stocks decline on Brexit jitters and caution ahead of Fed decision
Asian shares turned weaker on Tuesday as caution ruled ahead of Wednesday's Fed decision on interest rates and growing concern over a stronger yen spurred by chances of the U.K. exiting from the European Union.
European stocks followed the same pattern of risk-off trade, moving lower in midday trade.
U.S. futures also traded lower. At 9:59AM GMT, or 5:59AM ET, Dow futures gave up 0.22%; S&P 500 futures lost 0.27% and Nasdaq 100 futures fell 0.34%.
5. Oil hits 2-week lows; Brent loses $50-level
Global concerns over a possible Brexit also hit oil prices on Wednesday as investors fled from riskier assets, with Brent losing the psychological $50-level.
U.S. crude oil futures lost 1.58% to $48.11, at 10:03AM GMT, or 6:03AM ET, while Brent oil traded down 1.41% to $49.64.