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

January 24, 2017
UK Supreme Court to deliver verdict on Brexit
The UKs Supreme Court will be giving its verdict in the High Court on whether the Brexit referendum should be put to a parliamentary vote or note. There is a widespread consensus that the Supreme Court will rule in favor of the High Court...
January 24, 2017
Crude oil maintains bullish trend
Oil prices were initially weaker at the start of the new week, but they have now recovered to trade almost flat at the time of this writing. At the weekend, the OPEC and some producers outside of the group met to discuss the progress of their oil production deal...
January 24, 2017
Dollar found its feet after declining over the last day
Asian stock markets were mixed overnight, with Japanese bourses still under pressure (Nikkei closed down 0.55%). despite a dip in the Yen, as USD stabilised. Uncertainty over Trump’s regulatory and trade policies continues to weigh on investor sentiment...

NPBFX Rating
Z.com Trade Rating
 FXTM Rating
XTB Rating
EXNESS Rating
Grand Capital Rating

365BinaryOption Rating
EZTrader Rating
24option Rating
Banc De Binary Rating
Porter Finance Rating
UKoptions Rating