By Caroline Valetkevitch
NEW YOKR (Reuters) - Sterling and bond yields rose on Friday 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, U.S. stocks were lower in early New York trading, though MSCI's all-country world stock index (MIWD00000PUS) was up 0.5 percent and the FTSEurofirst 300 (FTEU3) gained 1.1 percent.
Campaigning for Britain's June 23 EU referendum, which overshadowed this week's U.S. 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 tumbled 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. “People are unwinding the ‘risk off’ trades for the most part.”
The sterling
U.S. 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 (US10YT=RR) fell 13/32 in price to yield 1.608 percent. Yields are on track for their first rise since June 6.
STOCKS SLIP, OIL UP
U.S. 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 (DJI) was down 87.73 points, or 0.49 percent, to 17,645.37, the S&P 500 (SPX) lost 10.51 points, or 0.51 percent, to 2,067.48 and the Nasdaq Composite (IXIC) dropped 43.39 points, or 0.9 percent, 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 (LCOc1) were up $1.34 at $48.53 a barrel, while U.S. crude (CLc1) rose $1.31 to $47.52.
The two contracts were set to end the week roughly 3.5-4 percent lower.
Gold also advanced, with spot gold