by Marc Chandler
The assassination of Jo Cox has broken the powerful momentum in the markets. Investors recognize that the tragedy potentially injects a new element into consideration for the outcome of next week’s referendum. The campaigns will resume over the weekend, and new polls will become available. Investors will place more weight on polls conducted after the assassination.
The UK referendum is the big event next week. However, there is another threat to Europe a couple of days before the June 23 referendum that does not appear to be on many calendars. The German Constitutional Court will deliver its ruling on the ECB’s Outright Markets Transaction program. No country has triggered the program, but some including Bundesbank President Weidmann object the referendum on grounds that it violates the ECB’s mandate.