Morning Markets Report

Prepared by Daniel on Tuesday, June 28, 2016

Summary The Dow Future is trending higher 177 points to 17162. The US Dollar Index fell 0.396 points to 95.970. Gold has eased 10.43 dollars to 1307.48. Silver has retreated 0.0325 dollars to 17.6305. The Dow Industrials declined 260.51 points, at 17140.24, while the S&P 500 moved down 36.87 points, last seen at 2000.54. The Nasdaq Composite trended lower by 112.94 points to 4595.04.

Key Events for Tuesday

8:30 AM ET. Bretton Woods Committee Annual Meeting

9:45 AM ET. June US Flash Services PMI

PMI, Services (previous 51.2)

10:30 AM ET. June Texas Manufacturing Outlook Survey

Business Activity (previous -20.8)

Mfg Production Idx (previous -13.1)

N/A UNCITRAL Annual Session

The Japanese yen closed up 280 points at .98395 today. Prices closed near mid-range after scoring mammoth gains and hitting a contract high on Friday. Bulls have the solid overall near-term technical advantage.

British pound closed down 449 points at 1.3210 today. Prices closed nearer the session low and hit a modern era record low today. Just Friday prices soared to a six-month high. The bears have the solid overall near- term technical advantage. There are no early clues of a market bottom being close at hand.

GENERAL STOCK MARKET COMMENT: The U.S. stock indexes closed sharply lower today. There was more heavy selling pressure as world markets are still tense and volatile after the Brexit "leave" vote late last week. The key "outside markets" were in a bearish posture for the stock indexes Monday.

The U.S. dollar index was sharply higher and crude oil prices were solidly lower. The world marketplace is still feeling the hangover effects of last Thursday's U.K. vote to leave the European Union. The short-term and long- term effects of the leave vote are being hotly debated, but one thing is certain and that's uncertainty. Traders and investors hate uncertainty and that's what's boosting safe- haven assets like gold.

European stock markets were solidly lower overnight. Asian stocks began to recover from the Brexit shock Monday as Chinese and Japanese stock markets posted overall gains. China's central bank on Monday weakened its yuan currency against the U.S. dollar by the largest amount since last summer.

U.S. Treasury bond futures prices were up by over 3 full points, price-wise as safe-haven moves among traders and investors are in firmly in play. The British pound and Euro currency continued to get hammered Monday. As long as the currency markets are roiled, sellers in safe-haven assets, including gold, will be scarce.