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Top 5 Things to Know In the Market on Monday

Published 2016-06-13, 05:56 a/m
© Reuters.  Top 5 Things to Know In the Market on Monday
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Investing.com - Here are the top five things you need to know in financial markets on Monday, June 13:

1. Global stocks fall in risk-off trade

U.S. stock futures pointed to a lower open on Monday, on the first trading day after the worst mass shooting in U.S. history.

Stocks in Asia and Europe plunged as worries about a potential exit by the U.K. from the European Union and weak Asian economic reports pushed investors into safe haven assets.

Japan’s Nikkei posted its steepest loss in six weeks, closing down 3.5%, sending the yen surging higher.

2. Sterling hit by Brexit fears

The pound fell to two-month lows against the dollar, while sterling and the euro hit their lowest level since 2013 against the safe haven yen after opinion polls showed that the EU referendum race is tightening ahead of the June 23 Brexit vote.

U.K. 10-year bond yields fell to an all-time low on Monday.

3. Brent falls back below $50

Brent oil prices fell back below the $50 per barrel level on Monday as weak economic reports out of China and Japan rekindled fears over the outlook for global economic growth.

U.S. crude was down 58 cents or 1.16% at $48.51 a barrel during morning hours in New York, while Brent touched lows of $49.80 and was last at $50.08.

4. China investment growth slows

Growth in China’s fixed-asset investment fell below 10% for the first time since 2000 in the January to May period, data on Monday showed.

The steep slowdown in investment rekindled expectations for more economic stimulus.

Another report showed that Chinese factory output grew 6% in May from a year earlier, matching April’s figure.

5. Japan corporate sentiment deteriorates

Sentiment at large Japanese manufacturers deteriorated again in the second quarter, data on Monday showed due to the stronger yen.

Japan's business survey index of sentiment at large manufacturers fell to minus 11.1 in the three months to June, from a reading of minus 7.9 in the first quarter.

The yen has gained almost 12% against the dollar so far this year amid uncertainty over the timing of Federal Reserve rate hikes.

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