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FTSE100 to go higher as EU campaign starts

FTSE100 is tipped to open higher as Asia markets went higher overnight...
Leaving or staying? That's the question for the summer's referendum..

FTSE100 is tipped to open higher as Asia markets went north overnight and as investors now look towards a UK referendum on whether to leave the EU or not in four months time.

It comes after a deal was struck by Prime Minister David Cameron on Friday  night, over reforms he had sought.

The focus will now turn towards how the markets will react to the campaign on the 'in- out' vote, which has already got off to an explosive start with Boris Johnson, London mayor, coming out on the "no" side. The prospect of a referendum on this issue has been knocking around British politcs for as long as anyone can remember.

Already, sterling has been hit with the currency hitting a two year low on Monday against the Yen and the market for the British pound will be a key one to look  as the campaigning gets underway proper..

Evan Lucas, at spreadbetter IG Index, said: "Brexit will be one of the biggest events in 2016. Over the weekend the EU granted all ‘special’ requests for Britain to remain part of the 28 member zone.

"However, it’s the political storm after Donald Tusk’s announcement that is making markets sit. Boris Johnson’s decision over the weekend to support the ‘Brexit’ campaign has caused the GBP to move wildly in weekend and out-of-hours trade. He is widely believed to be the next leader of the conservative party and is highly popular – his position has a lot of influence."

FTSE100 closed Friday at 5,950, down 22 points, but is today called to open around 41 points higher.

The Dow Jones on Wall Street closed down 21at 16,392, while the tech heavy Nasdaq added 16 points.

In Asia, the Nikeei 225 in Japan went up 143 points at 16,111 and the Shanghai Composite Index is 58 points ahead at 2,918.

In focus today will be the results from HSBC (LON:HSBA), which showed net income up 1% on last year, but missing analyst  expectations.


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