Morning market update from Interactive Investor

June brings some of the most critical market events of the year. The Federal Reserve decision on 15 June is potentially a key risk for global markets, followed by the EU referendum vote on the 23rd July, which has huge ramifications for the UK and Europe.

With uncertainty about both the Fed and EU referendum increasing and oil prices falling for a fourth day, investors have become more cautious, with European equity markets weaker as investors struggle to find reasons to invest.

The Fed has made it painfully clear over recent weeks that they will raise rates over the summer if the US economy continues to improve, as they expect. There has been substantial strength in recent consumer and housing market data, but it will be key labour market and inflation readings which ultimately prompt the Fed to act. Friday's employment figures, including wage growth, may therefore provide the required level of confidence to precipitate a June rate hike for what has become an increasingly hawkish Fed committee.

In the UK, yesterday's surprise poll suggesting that the referendum vote would be much closer than previously thought saw sterling tumble as investors are once again forced to contemplate the possibility of a UK exit.

At 8.20am, the most actively traded blue chip stocks by Interactive Investor clients were as follows: Glencore, Barclays and Royal Dutch Shell.

At 8.20am the most active small/mid caps were: Andalas Energy and Power, Sula Iron and Gold and Pantheon Resources.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.