UK Stocks Going Strong as Buying Continues

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Positive sentiment continued in global markets last night with all major stock indices closing higher.

The announcement from Mark Carney, Governor of the Bank of England (BOE), that the UK central bank will do its job whoever will be in power, helped boost the UK stock index.

“The UK 100 Index not only regained its losses from the immediate post-Brexit sell-off, but it has broken higher,” said Joseph Jeffriess, currency strategist at GO Markets.

View the full market commentary on video here.

He added, “It (UK Index) is now trading at levels not seen since 2015, which is quite amazing given the recent events in the UK.”

In the meantime, Boris Johnson, one of the leading campaigners for Brexit, said he will not run for Prime Minister. His statement came as a surprise to many given his active role in Brexit.

In the US, all of the indices were also up overnight with the Dow Jones and S&P 500 index both gaining more than 1.3 per cent.

“We’re seeing three days of non-stop buying and this is giving support to the major indices,” Jeffriess said.

Announcements from US policy makers that they are putting in steps to stabilise the markets (on the back of Brexit) are also very supportive of the strong moves in the markets.

In commodities markets, oil weakened a bit overnight and was trading around the $US48.70 level. Gold was slightly up.

The Australian dollar was also trading fairly flat after the New York close last night.

Australia will have its Federal Election on Saturday (2 July) and investors and traders will also be watching for the next move from the Reserve Bank of Australia (RBA), which is expected to make an announcement on interest rates on 5th July 2016.

READ  Bank of England Held Rates Overnight

 

GO Markets was founded in 2006 in Melbourne, Australia and is one of Australia’s premier MT4 Forex Brokers, offering Forex and CFD trading as well as Binary Options trading, via MT4, to individuals and institutional clients.



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