US Stock Futures Point to Day Two of Post-Brexit Rally

June 29, 2016

New York (Jun 29)  Stock futures pushed a rally into day two on Wednesday as the shock of Brexit continued to fade. S&P 500 futures were up 0.62%, Dow Jones Industrial Average futures rose 0.58%, and Nasdaq futures climbed 0.68%.

The shock of the United Kingdom's vote to exit the European Union last week sent global markets into a spiral Friday and Monday, eliminating $3 trillion in market capitalization. Such a steep descent over just two sessions has since presented traders with opportunity to pick up heavily oversold equities. The S&P 500 rose more than 1% on Tuesday.

Moody's downgraded its outlook for the U.K. banking sector to negative from stable due to the expected impact of the U.K.'s decision to leave the European Union. The credit agency also downgraded its outlook for 12 U.K. banks including Lloyds (LYG) , Barclays (BCS) and HSBC (HSBC) . Fitch and S&P cut their credit ratings for U.K. earlier in the week.

Crude oil continued to push higher on Wednesday, recovering alongside equities. The commodity had been under pressure over Friday and Monday's selloff as the greenback soared, deterring foreign purchases of U.S.-produced oil. West Texas Intermediate crude oil was up 1.1% to $48.37 a barrel on Wednesday.

Shire (SHPG) rose more than 3% in premarket trading after announcing that a trial for its treatment of ADHD had met its primary efficacy and safety endpoints. The drugmaker will resubmit the treatment for approval to the Food and Drug Administration toward the end of 2017.

Source: TheStreet

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