Equity markets rebound for a second day

June 30, 2016

Risk premium continues to unwind on hopes that central banks will adopt accommodative monetary policies amid Brexit uncertainties. Global equity markets rebounded for a second day, led by European markets.

The Singapore market is recovering its post-Brexit losses, with defensive sectors outperforming. Singtel – Singapore’s largest telecom service company – has soared to a ten-month high of $4.13 this morning.

Another sector that outperformed the STI benchmark is Real Estate Investment Trusts (REITs), as the expectation of rate hike from the Fed has dropped to an extremely low level since the Brexit vote. In a low-yield environment, certainty and sustainable dividend payouts will always attract demand from investors.

Commodities
Positive sentiment has spread over to the commodities market, with the front month WTI crude future extending its second-day rally to $49.50 this morning. Last night’s DoE report showed that US commercial crude inventory dropped by 4.05 million barrels, more than the expectation of 2.5 million. This indicates a further improvement in the supply-demand relationship.

The immediate resistance level for WTI crude futures is $50.20, with the next major resistance level around $54.7.

FX 
Sterling climbed for a second day to 1.3429 against the US dollar. In spite of this, ratings agency S&P lowered the UK’s sovereign credit rating from AAA to AA (negative) two days ago. The ‘lack of clarity’ from policymakers and the looming constitutional crisis in Scotland after the Brexit vote could lead to more volatility.
   
In the mid-term, safety assets such as gold, silver, US treasuries, and currencies like the US dollar, JPY and Swiss Franc will continue to be favoured by the market during uncertain times.

Publication source
CMC Markets information  CMC Markets reviews

December 5, 2016
Gold prices struggled for a direction
MACD was in the negative territory. If MACD remains in the negative territory, sellers’ positions will strengthen. RSI was in a neutral area...
December 5, 2016
Mixed Jobs Report Keeps High Fed Expectations Intact
As we noted the day before Friday’s US jobs report, only a significantly worse-than-expected reading for November would have likely made the Federal Reserve’s next interest rate decision more difficult...
December 5, 2016
Euro down but not out as Italy votes no!
Politics are setting the tone for Monday trading with all eyes on Europe. While Austria presidential polls delivered a defeat to the far-right candidate Norbert Hofer...

 FXTM Rating
XTB Rating
Trade360 Rating
Fort Financial Services Rating
Grand Capital Rating
HotForex Rating

Banc De Binary Rating
Anyoption Rating
Binary Brokerz Rating
OptionFair Rating
365BinaryOption Rating
Porter Finance Rating