Stocks, Pound Rally for First Time Since Brexit as Dollar Slips

[Purveyor]

Source: Bloomberg

Stocks, the pound and commodities all climbed for the first time since Britain’s shock vote to leave the European Union amid speculation policy makers will take steps to limit any economic fallout.

A gauge of global equities extended gains in afternoon trading for the biggest rally since January, while U.S. shares had their best day since March. Sterling rebounded after tumbling in the last two trading sessions.

The dollar snapped its steepest jump since 2011 as futures indicated that the next move in U.S. interest rates is now more likely to be a cut than an increase. The Bloomberg Commodity Index advanced the most in seven weeks. Yields on the world’s safest government bonds advanced.

The U.K’s vote to secede from the EU last week spurred a flight to safety and out of risk assets amid concerns a so-called Brexit will disrupt the global economic recovery. Investors are now looking to central banks for support, with Fed funds futures indicating there is higher probability the Federal Reserve will cut rather than raise interest rates this year. Before the referendum, there were zero prospects for a reduction, and a 50 percent probability of an increase by December.



Read more: http://www.bloomberg.com/news/articles/2016-06-27/pound-steadies-while-u-s-index-futures-rise-with-oil-after-rout

[PSPS]

1. But DU was awash in hysteria about "trillions" being "lost" !!11!1! LOL.

Money gets moved around all the time. It isn't "lost." What was in stocks was moved to bonds, and now it's coming back.

[Chakab]

2. Are you kidding? You're declaring this to be over based one day of modest gains after huge losses on

Friday and Monday? Do you realize that the UK has yet to even begin the formal process of severance from the EU by triggering article 50 of the Lisbon treaty?

This is an initial shock stemming from uncertainty about the outcome of the referendum, which was not legally binding.

If and when they actually leave, things will likely get much worse especially for people holding UK-based assets.

[PSPS]

4. Are you kidding? You're declaring this horrible based on one day of modest losses after huge gains?

See? It works both ways, doesn't it?

If I had a dollar for every day "the markets" went up or down 2%, I would be a millionaire.

[Chakab]

6. No, it doesn't work both ways. The losses exceeded the gains, and the real crisis hasn't even

started yet.

[pampango]

3. UK stocks will be fine. Their 1% will benefit greatly as EU labor and environmental

regulations disappear. As their 1% gets richer their stock market will be just fine; their middle and working class, not so fine.

[PSPS]

5. Yes, things would be better being told what to do by unelected bureaucrats in Brussels. Amirite?

It seems to work so well with NAFTA and XL suing the US for "lost profits."

[pampango]

7. I think bureaucrats throughout the world are 'unelected'.

If those 'unelected' bureaucrats are telling corporations that they have to abide by labor and environmental regulations, I can understand why conservatives would want to be free of those regulations.

Republicans complain about bureaucrats in Washington all the time. Conservatives in the UK complained about bureaucrats in Brussels. I see the pattern

It seems to work so well with NAFTA and XL suing the US for "lost profits."

"Lost profits" are not the basis of XL's suit but you probably know that.

[840high]

8. .+1

[LarryNM]

9. +1000 n/t