“Equities, the pound and commodity prices all climbed for the first time [on Tuesday, June 28th] since Britain’s shock vote to leave the European Union amid speculation policy makers will take steps to limit any economic fallout,” reports Bloomberg.
The story continues, “A gauge of global shares extended gains late in the U.S. day for the biggest rally in a week, while the S&P 500 Index has its best day since March amid a rebound in energy stocks. Oil and industrial metals drove the Bloomberg Commodity Index up the most in seven weeks, with the dollar snapping a two-day climb as futures indicate the next move in U.S. interest rates is more likely to be a cut than an increase. The world’s safest government bonds retreated with gold as the angst over the implications of Brexit eased.”
Reports USA Today, “Financial markets on Tuesday flashed their first signs of stabilization as the Dow shot up more than 200 points after the worst-ever two-day paper loss for the world’s stock markets in the wake of the United Kingdom’s vote to exit the European Union.
“The Dow Jones industrial average ended up 269 points, or 1.6%. The broader Standard & Poor’s 500 stock index was up 1.8% and the Nasdaq composite surged 2.1%. The bullishness in the U.S. stock market followed a rebound in European stock markets Tuesday after big losses Friday and Monday.”
The report adds, “[T]oday’s rebound is being framed by Wall Street as a ‘modest’ relief rally after a two-day equity selloff that wiped out $3.01 trillion in stock market value — the worst two-day paper loss in history, according to S&P Dow Jones Indices.”