Here are the top five things you need to know in financial markets on Monday, June 27:
1. Pound tumbles towards 31-year trough
The pound came under renewed selling pressure on Monday, falling back towards a 31-year trough after the U.K. voted to leave the European Union (EU), known as a Brexit, on Friday, triggering a massive selloff in global markets.
At 9:50AM GMT, or 5:50AM ET, GBP/USD was down 3.08% at 1.3257, not far from the lows of 1.3228 set on Friday, the weakest since 1985.
Both Goldman Sachs and Bank of America Merrill Lynch (NYSE:BAC) cut forecasts for sterling on Monday.
2. British government bond yields fall below 1% for first time ever
U.K. sovereign bonds, known as gilts, were being bid up, pushing the yield on benchmark 10-year bonds down to a record low of 0.934% amid fears over the long-term implications of Brexit on the global economy.
This was the first time ever that the gilt yield fell below 1% in records that go back to the 18th century.
3. Global stocks mixed with Asian shares higher on policy support
Asian shares gained on Monday as investors cautiously eyed other markets in the wake of the Brexit vote for the U.K. to leave the EU with policymakers in Japan and China responding.
However, European stocks continued to move lower. The FTSE 100 led the losses, but both the benchmark Euro Stoxx 50 and the German Dax fell by 1%.
U.S. futures also pointed to a lower open in a continuation of Friday’s sharp drop. At 9:51AM GMT, or 5:51AM ET, the blue-chip Dow futures fell 74 points, or 0.43%, S&P 500 futures dropped 8 points, or 0.37%, while the Nasdaq 100 futures gave up 22 points, or 0.52%.
4. Gold nears 2-year high on safe-haven demand
The flight to safe-haven assets continued to push gold up on Monday, nearing its highest level since July 2014.
U.S. gold futures for August delivery were up 0.5% at $1,329.0 an ounce by 9:57AM GMT, or 5:57AM ET.
On Friday, the precious metal hit a peak of $1,358.20 for the largest one day gain since September 2013.
5. Oil prices stabilize as supply concern eases
Oil prices stabilized on Monday, though still turned red in early European trade, as analysts said Brexit would have little impact on supply and demand in the global oil market.
Also late Friday, Baker Hughes said that the number of rigs drilling for oil in the U.S. fell last week for the first time in four weeks, easing worries the prices around $50 per barrel would cause U.S. producers to increase output.
U.S. crude oil futures slipped 0.06% to $47.60, at 9:56AM GMT, or 5:56AM ET, while Brent oil edged down 0.04% to $49.02.