Monday June 20th

20-06-2016

Dow futures add 200 points as Brexit polls turn

U.S. stock-index futures indicated a higher open Monday as global markets rallied on polls that showed the remain camp making gains ahead of Britain's EU referendum later this week. The Dow was set to make triple-digit gains after two opinion polls released over the weekend showed those wanting to stay in the European Union holding a slim majority against the leave campaign. Dow futures were up about 200 points, while S&P and Nasdaq futures advanced 23 points and 57 points, respectively. Investors have been on edge in the run-up to Britain's June 23 referendum. Investors this week area also keeping an eye on the Federal Reserve, with Janet Yellen set to testify in front of the U.S. Senate Committee on Banking, Housing and Urban affairs on Tuesday, and the House of Representatives' Committee on Financial services on Wednesday. Meanwhile, Minneapolis Fed President Neel Kashkari will take part in a panel discussion in Washington, D.C. to take part in the Third Symposium on Ending Too Big To Fail from 12:15 p.m. ET. No major earnings are expected. Asia markets closed higher while the pound rose on Monday, amid easing Brexit concerns after several weekend polls showed the remain camp regained momentum ahead of a referendum vote to decide the U.K.'s future within the European Union (EU). The benchmark Nikkei 225 in Japan closed up 365.64 points, or 2.34 percent, at 15,965.30, as a relatively weaker yen took some pressure off stocks and investors ignored news of a more than 11 percent drop in Japanese exports for the month of May. Across the Korean Strait, the Kospi gained 27.72 points, or 1.42 percent, at 1,981.12. In Hong Kong, the Hang Seng index added 1.75 percent as of 2:35 p.m. HK/SIN. Chinese markets retraced initial losses to close higher, with the Shanghai composite adding 3.48 points, or 0.12 percent, to 2,888.59, while the Shenzhen composite closed up 8.38 points, or 0.44 percent, at 1,909.12. Oil rallied on Monday, lifted by a wave of investor confidence and a weaker dollar after polls showed a diminishing chance that Britain may vote to leave the European Union later this week. August Brent crude futures were up $1.04, or 2.1 percent, at $50.21 a barrel by 8:07 a.m. ET (1207 GMT), set for a gain of 6 percent in two trading days. U.S. crude for July delivery, which expires on Tuesday, was up 92 cents, or 1.9 percent, at $48.90 a barrel. Gold eased more than 1 percent on Monday, extending its slide from a near 2-year peak hit last week, as polls ahead of a referendum showed Britain could opt to remain in the European Union. Spot gold dropped 1.14 percent to $1,283.36 an ounce, after touching a low of $1,280.15 earlier in the session. Bullion closed 1.5 percent higher on Friday to post its biggest single day gain since June 3. The precious metal hit its highest since Aug. 2014 in intraday trade on Thursday. U.S. gold slid 0.6 percent to $1,286.30.