U.S. stocks bounced back today after a softer session yesterday, reflecting the general trend today across global markets. The NASDAQ (INDEXNASDAQ:NDX) is up over 1% this morning while the S&P 500 INDEXCBOE:SPX) is up almost 1% 30 minutes into the trading day.
European equities pare early day losses
The market will now further gauge possibilities of a rate hike while economic data releases for the day will be limited to new home sales and the Richmond Fed survey. European stock markets started jittery but were quick to erase losses following the Eurogroup meeting. Asia was the exception as shares were mostly lower over uncertainty over tighter monetary policy in the U.S.
Oil prices also declined as increased production in Iraq offset price stability hopes. Moreover, oil disruptions are also reported to be subsiding, which aggravated concerns of an oil glut. Both Brent Crude and West Texas Intermediate fell below $48 per barrel.
Bremain campaign gains lead
In currency, the British pound jumped substantially following a release of a new opinion poll of the Bremain vs. Brexit campaign surrounding the United Kingdom’s membership in the European Union. Survey results revealed that the Bremain campaign is gaining traction to keep the UK EU membership alive. An ORP poll showed that Bremain has a 13-point lead over Brexit.
Market traders are closely following a meeting that is in progress in Brussels among Eurozone finance ministers. The meeting will discuss Greek debt and review its bailout program. Eurozone leards are likely to release 10 billion euros in new loans after Greece has implemented the necessary reforms including high tax hikes.
Gold and the SPDR Gold Trust (ETF) (NYSEARCA:GLD) hit a four-week low after renewed expectations of an early rate hike by the Federal Reserve. Philadelphia’s Federal Reserve President, Patrick Harker, is the latest official to reiterate that the U.S. economy has room to accommodate two to three rate hikes this year.