Thursday June 30th

30-06-2016

US futures lower as post-Brexit rally cools off; data eyed

U.S. stock-index futures traded lower Thursday, indicating a mixed open, as traders digested the release of data and kept an eye on the fallout from the U.K.'s decision to leave the European Union. On Wednesday, the Dow Jones industrial average posted its best two-day point gain since August. On the data front, initial jobless claims came in at 268,000, slightly above expectations. The Chicago PMI is due at 9:45 a.m. ET. Later on Thursday, St Louis Fed President James Bullard will give a speech in London at the Society of Business Economists' annual dinner. The pan European Stoxx 600 Index was up 0.1 percent on Thursday. Asia markets lost some momentum on Thursday, even as global markets recovered from their post-Brexit plunge. Australia's ASX 200 added 91 points, or 1.77 percent, to 5,233.40, boosted by more than 1 percent advances in the financials, material and energy sub-indexes. Japan's Nikkei 225 closed nearly flat at 15,575.92, giving up most of its nearly 1 percent gains from earlier in the session. Across the Korean Strait, the Kospi closed up 13.99 points, or 0.72 percent, at 1,970.35. In Hong Kong, the Hang Seng index gained 1.02 percent in afternoon trade. Chinese mainland markets were muted, with the Shanghai composite finishing near flat at 2,929.60 and the Shenzhen composite also flat near 1,974.23. On the earnings front ConAgra, Constellation Brands, and Darden Restaurants reported before the bell. Micron is set to report after the bell. Oil fell to about $50 a barrel on Thursday, pressured by higher Nigerian output and concern about the economic outlook following Britain's vote to leave the European Union last week. Returning Nigerian supply will put pressure on prices, Goldman Sachs said, adding that outages caused by Canadian wildfires would virtually end by September. Norwegian supply could be hit by a threatened workers' strike, however. Brent crude was down 62 cents a barrel at $49.99 by 8 a.m. ET (1200 GMT), having risen in the two previous sessions. U.S. crude was down 81 cents to $49.07. Gold edged down on Thursday as the wider markets showed signs of stabilising, but the metal remained on track for its biggest monthly rise since February in the wake of last week's vote on Britain's membership of the European Union. Shares, bonds and currencies plunged on Friday after the British vote to leave the EU trading bloc sent investors scurrying for the perceived safety of gold, which leapt to its highest in nearly two years at $1,358.20 an ounce. Spot gold was at $1,317.01 an ounce, down 0.1 percent, while U.S. gold futures for August delivery declined by 0.5 percent to $1,320.20.