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IN-THE-MARKETS

In the Markets – Week-Ending June 24

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending June 24
Crystal Brook Advisors
We Make Financial Planning Crystal Clear

United States: Federal Reserve Chairwoman Janet Yellen, in her semiannual monetary-policy testimony, told Senate lawmakers “policy remains accommodative,” even though the central bank has begun the process of raising rates.(1) The number of Americans filing fresh applications for jobless benefits fell last week to the lowest level since April, a sign that the job market may be showing some resilience after May’s slowdown in hiring.(2)

Europe: German investor confidence surged in June, rising to to 19.2 points from 6.4 last month, reflecting the resilience of Europe’s largest economy despite anxiety over the U.K.’s vote on EU membership.(3) A wave of carnage is sweeping through the global markets after Britain voted to leave the EU in a historic referendum.(4)

Asia: Japanese exports fell for an eighth consecutive month in May as shipments to China, the U.S. and Europe slumped.(5) Chinese prices for land have hit record highs, even though making money from that land will prove exceedingly difficult.(6)

Monday 06/20

• Global stocks soared and sterling surged after weekend polls suggested the U.K. was more likely to vote to remain in the European Union in Thursday’s referendum.(7)
• The SEC has finally given approval to IEX Group’s request, meaning the “Flash Boys” will be able to challenge the NYSE, Nasdaq, and Bats Global as the nation’s 13th national stock exchange.(8)

Tuesday 06/21

• Stocks edged higher as the U.K.’s coming vote on European Union membership continued to steer financial markets.(9)
• Tencent has reached an agreement to buy Supercell Oy, the maker of the popular “Clash of Clans,” in a deal that could turn the Chinese internet major into a global video game powerhouse.(10)

Wednesday 06/22

• Global markets were broadly steady as investors avoided big moves just one day before the U.K.’s vote on membership in the European Union.(11)
• Tesla Motors investors dumped shares a day after the company unveiled a takeover offer for SolarCity, fueling doubts over Elon Musk’s plan to combine the electric-car and solar-energy companies he backs.(12)

Thursday 06/23

• Global stocks rallied while sterling rose to a 2016 high against the dollar as Britain began to vote in a referendum on its European Union membership.(13)
• After raising $150M in its initial public offering, Twilio has priced 10M Class A shares (above its targeted $12-14 range) at $15 each, valuing the cloud software developer at $1.23B.(14)

Friday 06/24

• Britain’s vote to leave the European Union battered the British pound and sent stocks in Europe and Asia tumbling, pointing to a day of steep falls across the world’s financial markets.(15)
• Sterling has reach its lowest levels since 1985.(16)
 

Market Close
U.S. stocks plunge as uncertainties mount as U.K. votes to leave EU. Dow tumbles 610 pts, 3.4%, to close at 17,400, worst percentage loss since Aug. 24. S&P 500 sinks 75 pts, or 3.6%, to end at 2,037, worst one-day drop since Aug. 24. Nasdaq slumps 202 pts, or 4.1%, to finish at 4,707, among its worst days in 16 yrs.(17)

Contributor: Oscar Xia

Sources:
(1) Source: Wall Street Journal
(2) Source: Wall Street Journal
(3) Source: Seeking Alpha
(4) Source: Seeking Alpha
(5) Source: Seeking Alpha
(6) Source: Wall Street Journal
(7) Source: Wall Street Journal
(8) Source: Seeking Alpha
(9) Source: Wall Street Journal
(10) Source: Seeking Alpha
(11) Source: Wall Street Journal
(12) Source: Wall Street Journal
(13) Source: Wall Street Journal
(14) Source: Seeking Alpha
(15) Source: Wall Street Journal
(16) Source: New York Times
(17) Source: MarketWatch