‘Leave’ lead at Brexit vote diminishes U.S. rate-hike view – Metro US

‘Leave’ lead at Brexit vote diminishes U.S. rate-hike view

‘Leave’ lead at Brexit vote diminishes U.S. rate-hike view
By Richard Leong

By Richard Leong

NEW YORK (Reuters) – U.S. short-term interest rates futures rose in late U.S. trading on Thursday as the latest official results suggested more U.K. voters favored Britain to leave the European Union than those who preferred to stay, diminishing expectations the Federal Reserve would raise interest rates in July.

With results in from the first 13 of 382 voting districts, those in favor of ending Britain’s 43-year membership with the EU were on 52.4 percent of the vote, while those wanting to stay were on 47.6 percent.

Fed policy-makers have raised worries that a Brexit would harm the global economy.

Dallas Federal Reserve President Robert Kaplan said on Thursday that he was concerned about Brexit because it could stress global trade activity.

“It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table,” Mike Baele, managing director with the private client reserve group at U.S. Bank in Portland, Oregon, said of the latest Brexit results.

Federal funds futures implied traders saw a 10 percent chance the Fed would raise interest rates at its July 26-27 policy meeting , after rising to 17 percent earlier Thursday when early pollings suggested “Remain” had a lead in the Brexit referendum, according to Reuters data.

(Reporting by Richard Leong; Editing by Toni Reinhold and Leslie Adler)

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