– This is the script of CNBC's news report for China's CCTV on July 4, Monday.
Welcome to CNBC Business Daily, I'm Qian Chen.
The rapid switch in financial markets from absolute fear over the U.K. referendum to cautious acceptance suggests volatility could stay high, as investors await Friday's June employment report.
Markets will seriously kick off the third quarter in the coming week, after the three-day Fourth of July weekend. The holiday may serve as a cooling off period after the S&P 500 went on a rapid roller coaster ride in recent sessions.
The S&P shed 5.3 percent between last Friday and Monday, after the U.K. stunned the world and voted itself out of the European Union. Uncertainty around that event lingers, but the market rebounded, and the S&P recovered most losses. The S&P 500 ended the week 3.2 percent higher at 2,102, its best weekly gain since November.
"Now cooler heads prevail. I was scared to death telling clients to buy last Friday morning, but we had a very high conviction it was the right thing to do, simply because what we saw led us to believe that even with the surprise outcome, investors were completely over-hedged for the situation," said Julian Emanuel, equity and derivatives strategist at UBS. He noted that the over hedging is apparent in the more than 40 percent decline in the VIX, the CBOE Volatility Index, this past week.
The U.S. economy is expected to have added 180,000 jobs in June, up from the shockingly low 38,000 reported for May. Some economists are treating the May report as an inexplicable anomaly, but traders are watching to make sure it was not signaling that the labor market has weakened.
U.S. government debt prices were higher on Friday, building on a global bonds rally, as investors looked to the release of a host of data ahead of the Fourth of July weekend.
The yield on the benchmark 10-year Treasury note sat lower at 1.004 percent, after hitting their lowest level in four years, according to Reuters.
The yield on the 30-year Treasury bond was also lower at 2.241 percent after hitting a new all-time low.
Bank of England Governor Mark Carney said late on Thursday the central bank would probably need to pump more stimulus into Britain's economy over the summer after the shock of last week's decision by voters to leave the European Union.
Overseas, 10-year German Bund yields traded at negative 0.1265 percent, a day after closing at a new all-time low.
Spain and Italy, where 10-year yields hit their lowest in more than a year, saw the most pronounced market moves amid talk about changes to the European Central Bank's asset purchase program that could benefit southern Europe.
CNBC's Qian Chen, reporting from Singapore.