4 Things to Know in Thursday’s Market

U.S. banks pass the Fed’s stress tests, global markets continue their recovery, political fallout continues in the U.K., and U.S. data is set to be released later today. Here are four things to know in the market today, June 30.

1.     Major U.S. Banks Pass Federal Reserve’s Stress Tests

Citigroup Inc. (C), Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and 27 other major U.S. firms passed the Federal Reserve’s stress tests, which allows the banks to increase shareholder payouts.

Morgan Stanley (MS) was only given conditional approval. Banco Santander’s (SAN) and Deutsche Bank’s (DB) U.S. arms both failed.

2.     Global Markets Continue Post-Brexit Recovery

Markets are higher again on Thursday, but still far below the pace of pre-Brexit sessions. The MSCI Asia Pacific Index climbed 0.8% overnight. Japan’s Topix Index lost earlier gains, closing 0.2% lower.

Over in Europe, the London FTSE 100 was up 0.4%, and the Stoxx 600 Index edged 0.1% higher.

S&P 500 futures were up 0.1%.

3.     Political Fallout in the U.K.

The latter half of the week brought more political fallout to the U.K. Jeremy Corbyn, opposition leader, is still clinging onto his power even though an MP vote called for him to leave. In the House of Commons, the Prime Minister also implored Corbyn to leave.

In the race for Prime Minister, Michael Grove made a surprise announcement that he would be running against Boris Johnson after the two campaigned for the “Leave” campaign together.

Theresa May, Home Secretary of the U.K., also announced that she would be running for the position on Thursday morning.

4.     More U.S. Data Coming

Investors are turning their focus to key U.S. data that will be released later in the session, including the weekly jobless claims report and data on business activity in the Chicago area.

James Bullard, St. Louis Fed President, is also expected to speak today on monetary policy and the economy at the Society of Business Economists Annual Dinner in London.

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Daniel Simmons