U.S. stocks are likely to start their day by adding gains as signaled by futures movements in early hours. S&P 500 INDEX (INDEXCBOE:SPX) Futures was seen trading 0.62% higher at 2,041 and NASDAQ (INDEXNASDAQ:NDX) Futures advanced 0.71% to 4,311.25.
Article 50 not yet invoked
Among the major key developments that will influence U.S. markets will include British Prime Minister David Cameron’s meeting with the European Council. Cameron did not invoke Article 50, which suggests a delay in the United Kingdom’s departure from European Union. However, European leaders maintained that Britain will have to implement Article 50 before any new trade agreements are discussed. Invoking Article 50 will start the countdown for UK to start with the exiting process with a two-year deadline.
Meanwhile, global markets have brushed off Brexit concerns, uplifting major indices. European traders responded positively to speculations that the UK will refrain from invoking Article 50 until it negotiates on a trade agreement, even though European leaders have refused negotiations until Article 50 is triggered.
The outlook for the U.S. Dollar (CURRENCY:USD) remained weak as one Federal Reserve governor Jerome Powell stated that Brexit has pushed back the drivers of the U.S. economy, particularly when job market, even though unemployment is at historic lows as are jobless claims. He added that Brexit can reverse the recovery process in the world including the U.S. Markets have already taken the hint that the U.S. might not see any more rate hikes this year, which effectively means there will probably be zero rate hikes in 2016 despite all the talk.
The core PCE index scheduled to be released today for May will be a focus for traders as it is considered one of the significant barometers of U.S. economic trends. Economists have projected the index to rise by 0.2% in May. Alongside this, report on oil stocks by the Energy Information Administration (EIA) will also be closely followed by markets. iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) pushed higher during today’s premarket trade in anticipation that U.S. inventories will show a fall for the previous week.