Dow futures rise 100 points as Brexit anxiety eases

U.S. stock index futures rallied on Wednesday as global markets continued to recover from the Brexit vote swoon.

Dow futures were up about 100 points, while S&P and Nasdaq futures were up 13 points and 30 points, respectively.

Both the pan-European STOXX 600 index and the U.K.'s FTSE 100 traded more than 2 percent higher on Wednesday, having rallied in the previous session. Sterling continued to gain against the U.S. dollar.


"Yesterday was a better day for markets, with some sense of calm restored for now at least. But this was perhaps not surprising given the violence of the moves in the previous two trading days. And it would fit with the pattern seen in previous crises," Grant Lewis, head of research at Daiwa Capital markets, said in a note on Wednesday.

Income rose 0.2 percent, while spending rose 0.4 percent in May.

The Fed's preferred inflation measure of personal consumption expenditures (PCE) price ex-food and energy rose 0.2 percent last month, or 1.6 percent over the 12 months through May.

Treasury yields edged higher, with the 2-year yield around 0.62 percent.

Earlier, the 30-year Treasury yield hit its lowest since February 2015, closing in on its record low set 17 months ago, as investors also loaded up on European and Japanese government bonds and sent their yields to historic lows, Reuters said.

Major companies reporting quarterly earnings on Wednesday include Monsanto, General Mills and Acuity Brands.

On Wednesday, Goldman Sachs said that in the wake of Brexit, the U.S. financial sector would be at risk from contagion because of its high connectivity with the U.K. financial system.

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"Financially at least, the U.S. and the U.K. are two of the most interconnected countries in the world," Goldman said in a report.

"However, the post-financial crisis central banking and regulatory regime should limit concerns over the banking sector," it later added.

In the first of Fed policymakers to comment since the Brexit vote, Federal Reserve Governor Jerome Powell said Tuesday in a Reuters report that Brexit could pose a new drag on the U.S. economy at a time when momentum in the U.S. job market may already by slowing.

He also said the U.K. vote to leave had shifted global risks "to the downside" and potentially posed a new threat to the Fed's outlook.

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