US Stock Futures Point to a Rebound From Two-Day 'Brexit' Selloff

New York (Jun 28)  Stock futures pushed higher on Tuesday and were on track to snap Wall Street's two-day selloff driven by the "Brexit" shock.

S&P 500 futures were up 1%, Dow Jones Industrial Average futures rose 1.1%, and Nasdaq futures climbed 1.1%.

The S&P 500 fell more than 5% over the past two days after the United Kingdom voted to leave the European Union. The move has far-reaching political and economic consequences as new trade deals and regulations begin to get drawn up over the next two years. Both Standard & Poor's and Fitch lowered their ratings on U.K. debt on Monday.

The two-day selloff in global markets wiped out $3 trillion in market capitalization on the Brexit shock. The pound plummeted to its lowest level in 30 years on Monday, driving the greenback higher and pushing crude oil prices to their worst settlement in a week.

The British government has abandoned plans to sell its stakes in Royal Bank of Scotland (RBS) and Lloyds Banking Group (LYG) this year in the wake of the Brexit vote, according to sources, Reuters reported. The government had hoped to reduce its exposure to the banks it took over during the financial crisis, raising roughly 9 billion euros through stock sales.

Talk of further accommodation from global central banks appeared to boost investor appetite on Tuesday. Hopes have begun to rise that the Bank of England and the Bank of Japan could offer further stimulus in the wake of the uncertainty in Europe. Since Friday, the chances of a rate hike from the Federal Reserve this year have become unlikely, according to CME Group fed funds futures. 

Source: TheStreet