Sterling and bond yields rose yesterday as traders tried to assess whether the killing of a pro-EU British lawmaker may change the balance of opinions in Britain’s impending referendum on European Union membership.

After a tumultuous week, US stocks were lower in early New York trading, though MSCI’s all-country world stock index was up 0.5 per cent and the FTSEuro­first 300 gained 1.1 per cent.

Campaigning for Britain’s June 23 EU referendum, which overshadowed this week’s US and Japanese central bank meetings, was put on hold after British Member of Parliament Jo Cox was shot dead on Thursday.

Concerns Britain would cause turmoil in the global economy and European politics by voting to leave the 28-country bloc had rattled markets and caused the pound to tumble earlier this week.

“This is people adjusting positions because they don’t know what’s going to happen,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York.

The sterling was last up 0.58 per cent at $1.4285, up from Thursday’s lows of 1.4010. Analysts noted that Ms Cox’s death could generate sentiment in favour of remaining in the EU.

US benchmark Treasury yields were on track for their first gain in nearly two weeks as fears of a British exit from the EU eased somewhat.

The 10-year Treasury note fell 13/32 in price to yield 1.608 per cent. Yields are on track for their first rise since June 6.

US stocks were lower on lingering worries about global growth. The S&P 500 snapped a five-day losing streak on Thursday.

The Dow Jones industrial average was down 87.73 points, or 0.49 per cent, to 17,645.37, the S&P 500 lost 10.51 points, or 0.51 per cent, to 2,067.48 and the Nasdaq Composite dropped 43.39 points, or 0.9 per cent, to 4,801.52.

Oil, which has been a major driver of the sharp swings in global markets this year, also helped shift the mood as it rose for the first time in seven sessions.

Brent crude futures were up $1.34 at $48.53 a barrel, while US crude rose $1.31 to $47.52. The two contracts were set to end the week roughly 3.5-four per cent lower.

Gold also advanced, with spot gold rising to $1,292.90, after wild swings overnight. It was on track for a third week of gains.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.