Pound, U.S. Stocks Rebound After Brexit Campaigns Suspended

By Markets MarketWatch Pulse

he British pound and U.S. stocks rebounded Thursday after both sides in the U.K. European Union referendum campaign suspended activity for the day following death of a U.K. lawmaker who was shot while meeting with constituents. Boris Schlossberg, managing director of currency strategy at BK Asset Management, said rumors that the U.K. referendum, set for next week, could be delayed because of the attack helped push stocks and the pound higher. There's been no official indication that a referendum delay is being contemplated. If the police confirm suspicions that the attack was politically motivated, it could bolster support for a "remain" vote, Schlossberg said. "If the supposition of the market is right -- that this was a politically motivated act -- it's probably going to alter the calculus for the vote," Schlossberg said. The pound recently traded at $1.4197, off its daily low of $1.4012. U.S. stocks pared much of their earlier losses, with the Dow industrials turning flat on the day at 17,640. The S&P 500 was off 0.2% at 2,068. Government bond yields also rose. Bond yields move inversely to prices.

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