US pre-open: Stocks seen flat as investors reassess Brexit chances

US futures pointed to a broadly flat open on Wall Street as investors reassessed the chances that Britain might vote to leave the EU in next week’s referendum.

“US stocks look set to open basically unchanged following a day that saw the biggest daily gain after a loss of over 100 points for the Dow Jones Industrial Average since February,” said CMC Markets’ Jasper Lawler.

On Thursday, the S&P 500 ended up 0.3%, the Dow closed up 0.5% and the Nasdaq closed the session 0.2% firmer.

At 1155 BST, Dow Jones Industrial Average and Nasdaq futures were down 0.1% while S&P 500 futures were 0.2%.

In Europe, the main indices were all over 1% higher as both sides of the referendum debate suspended campaigning until Saturday at the earliest following the murder of a British MP on Thursday.

Labour MP Jo Cox was shot and stabbed in her constituency town of Birstall near Leeds by local resident Tommy Mair, who is reported to have shouted “Britain First” as he attacked her. There was a sense among market participants on Friday that the incident could sway public opinion back towards a Remain vote.

“One of the triggers for the change in market sentiment appears to be the suspension of Brexit campaigns following tragic killing of MP Jo Cox. The suspension of campaigns just means Brexit can temporarily move to the sidelines,” said Lawler.

“The killer is reported to have said ‘Britain First’ before shooting the MP, who was a strong believer in Britain remaining in the European Union. If true, it could tarnish the image of pro-Brexit supporters.”

Oil prices recovered, with West Texas Intermediate up 1.7% at $46.98 a barrel and Brent crude up 2.2% to $48.22.

In corporate news, Microsoft shares nudged lower in pre-market trade following news it was partnering with a cannabis industry software company.

Cosmetics giant Revlon was a little firmer after saying late on Thursday that it had agreed to buy Elizabeth Arden for $14 per share in cash, representing an enterprise value of around $870m.

On the data front, US housing starts and building permits are due at 1330 BST.