Post Brexit Rebound Continues In Stocks Markets
ActionForex | Jun 30, 2016 04:18AM ET
The post Brexit rebound in stocks continued. DJIA closed up 284 pts, or 1.64%, at 17694.68 overnight while S&P 500 rose 34.68 pts, or 1.7%, to close at 2070.77. Asian markets follow with Nikkei trading up 0.8% and HK HSI up 1.7% at the time of writing. WTI crude oil touched 50 handle yesterday and is now trading at 49.5 and gold consolidates around 1320. Fed fund futures are reflect easing market worries as they're now pricing 1.2% chance of rate cut by Fed in July and September, comparing to above 4% earlier this week. A main focus today is whether sentiments continue to improve, in particular, UK FTSE could be testing pre-Brexit high of 6380 and a key near term resistance zone around 6400. The index could even be completing a head and shoulder bottomg formation.
EU leaders met for the first time without UK yesterday as Brexit was the topic of discussion. 27 leaders emphasized in the statement that "there can be no negotiations of any kind before this notification has taken place," referring to the activation of Article 50 for withdrawal. Also, "ay agreement, which will be concluded with the UK as a third country, will have to be based on a balance of rights and obligations. Access to the single market requires acceptance of all four freedoms." And the four freedoms include movement of workers, goods, services and capital.
BoE governor Mark Carney will speak today regarding how UK would cope with Brexit and take questions from the press. That will be the main focus of the day. On the data front, New Zealand building permits dropped -0.9% mom in May, NBNZ business confidence rose to 20.2 in June. Japan industrial production dropped -2.3% mom in May. UK Gfk consumer confidence was unchanged at -1 in June. Germany will release retail sales and unemployment in European session. Eurozone will release CPI flash and ECB meeting accounts. UK will release Q1 GDP final, current account and index of services. In US session, Canada will release RMPI and IPPI, GDP. US will release Chicago PMI.
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