Fed leaves interest rates unchanged. The U.S. Federal Reserve policymakers this week voted against a rise in interest rates.The Fed signalled that it still anticipate to raise interest rates twice this year. In the previous meeting held in April, the Fed hadfavoured an increase in interest rates in June, though May’s jobs sharp slowdown, low inflation and geopolitical headwinds werefactors the Fed could not ignore. Though U.S. economic growth continues to strengthen, the rate of improvement in the labourmarket had diminished and “business fixed investment has been soft”. In May, the economy have added only 38,000 jobs. TheFed lowered their 2016 GDP forecast to 2% this year from 2.2% previously. It seems unlikely that inflation will rise to Fed’s 2%target by the end of 2018.Eurozone first quarter employment growth remains stable. Statistics published this week by the Eurostat showed thatEurozone employment increased at a steady rate for the second consecutive quarter in the three months ended March. Thenumber of employed people increased by 0.3% the same rate of rise in the preceding two quarters. Eurostat estimates show thatthere were 152.6 million employed in the Eurozone. This was the highest level since the fourth quarter of 2008. Employment inconstruction increased by 0.2% whilst employment in manufacturing rose by 0.1% over the quarter. A decline of 0.2% wasregistered in the agriculture, forestry and fishing sector. On annual basis, Eurozone employment rose by 1.4% in the first quarter,up from the 1.2% in the previous period.UK house prices up by 8.2% over the year. According to figures published by the Office for National Statistics (ONS) showedthat the British house price inflation slowed for the first time in eight months in April. The U.K. house price index rose by 8.2%year-over-year in April, marginally lower than the previous month’s 8.5% increase. The average U.K. house price reachedGBP209,000 in April, which was GBP16,000 higher when compared to April 2015. On an annual basis house prices inflation inEngland was 9.1% whilst house prices in Wales rose by 1.7%. The ONS said that London remained to be the region with thehighest average house price at GBP470,000. In April, house prices increased by 0.6% over the previous month.German 10-year government bond yields dip below zero. The yield on the 10-year benchmark German Bund fell below zerofor the first time ever this week as investor’s rush to safe havens ahead of Britain’s Brexit referendum. The country joined Japanand Switzerland in having 10-year bond yields in negative territory. Falling yields has been influenced by European Central Bank’s(ECB) policy of negative interest rates and asset purchase programme. It is also accredited to concerns about the global economy,low inflation outlooks in the Eurozone and as surveys are showing the “Leave” campaign in Britain’s referendum is gainingmomentum.Australia business confidence falls in May. According to a survey published by the National Australia Bank (NAB), businessconfidence in Australia weakened further in May. The NAB Business confidence index fell from 5.0 in April to 3.0 in May. In March,the score was 6.0. Simultaneously, the index gauging present business environments was stable at 10.0 in May. Likewise, theforward orders index also remained unaffected at 2.0 in May. This was more stable with business situations and projects goodnear-term predictions for activity. Notwithstanding better trading conditions, the employment index fell from 4.0 in April to 1.0 inMay. “The RBA's cut to interest rates did not help lift business confidence as we had hoped, even as sales activity continues toimprove,” NAB Group Chief Economist Alan Oster, said. “Uncertainty around the upcoming election might be a factor here, butmixed results across industries suggest that other factors are at play”.Global oil markets to balance out. The International Energy Agency (IEA) said that the Global oil markets are moving close tobalance in the second half of this year on stronger-than-expected demand and on supply disruptions. According to IEA, theoversupply in the first half of this year is expected to stand around 800,000 barrels per day, less than the 1.5 million barrelsoriginally projected. The IEA alerted that an “enormous inventory overhang” is likely to inhibit predictions of a significant rise in oilprices. .Gold prices today hit 22 month high. Gold price increased by nearly 2% , exceeding the $1300 level following the U.S. FederalReserve which showed it could be less aggressive in tightening monetary policy next year. Gold is influenced by interest ratehikes, which rises the opportunity cost of holding such metal.Brexit Referendum Notice to customers. The U.K. government will hold a referendum on Thursday, June 23, 2016 to decidewhether the country will remain a member of the European Union. Due to the Brexit event, the financial markets are likely toexperience high volatility, along with liquidity gaps and market dislocations around this event (either slightly ahead of, or duringthe vote, or after the vote, as exit polls and results start to filter out). However we want to underline some possible constraintsahead of potentially disrupted market conditions which might negatively affect the usual levels of liquidity and pricing in general.