Investing.com - Here are the top five things you need to know in financial markets on Thursday, June 30:
1. Global stocks attempt to extend impressive post-Brexit rally
Global stock markets attempted to extend a sharp post-Brexit rally into a third day on Thursday, as investors continued to digest the political and economic aftermath of the U.K.’s decision to leave the European Union.
U.S. stock markets pointed to a modestly higher open, as traders looked ahead to the release of key U.S. data while keeping an eye on the fallout from the U.K.'s decision to leave the European Union.
Elsewhere, European stocks reversed earlier losses to trade higher, extending a recovery from their post-Brexit plunge.
Meanwhile, in Asia, equity markets closed mostly higher, taking momentum from sharp overnight gains in the U.S.
2. BoE’s Carney to speak on Brexit
Bank of England Governor Mark Carney is set to outline his thinking on how Britain's economy is coping with last week's vote to leave the European Union in a speech on Thursday. Carney is due to speak at the Bank of England at 15:00GMT, or 11:00AM ET, and then take questions from journalists.
Data released earlier confirmed that the U.K. economy grew 0.4% in the first quarter, while business investment declined.
3. Political fallout from Brexit continues
Britain’s Justice Secretary Michael Gove, one of the main campaigners to take Britain out of the EU, said on Thursday he would run to become prime minister, shaking up the contest and hurting the chances of his Brexit ally, ex-London mayor Boris Johnson.
Interior Minister Theresa May, who campaigned to remain in the EU, also announced her candidacy to lead the party.
Other Conservative Party politicians to declare they are standing to replace Cameron so far are Welsh Secretary Stephen Crabb and Defence Secretary Liam Fox.
4. U.S. data, Fed speaker ahead
Investors looked ahead to key U.S. data later in the day to gauge the health of the world's largest economy. The U.S. is to release weekly jobless claims data at 12:30GMT, or 8:30AM ET. Afterwards, data on business activity in the Chicago region is due at 13:45GMT or 9:45AM ET
Meanwhile, St. Louis Fed President James Bullard is due to speak about the U.S. economy and monetary policy at the Society of Business Economists Annual Dinner, in London at 17:30GMT, or 1:00PM ET.
Market players all but ruled out further rate hikes by the Federal Reserve this year in the aftermath of Britain’s shock vote to leave the EU.
5. China to allow further yuan depreciation
The People's Bank of China is willing to allow the yuan to fall to 6.8 per U.S dollar in 2016 (USD/CNY), according to reports citing policy sources.
Such a decline would represent an annual drop of 4.5%, matching last year's record fall, as policymakers attempt to support the economy, which has been hit by weak exports and economic growth.