Asian stock markets were firmer overnight albeit constrained following mixed data from the region. The Nikkei gained 0.5% after positive Japanese data alluded to a strengthening economy. However, sentiment was dampened after the release of Chinese data showed Caixin Manufacturing dropped to its worse level in 4 months, forcing equities off of their best levels as the Shanghai Composite closed flat at 0%.


The ECB are rumored to be looking to loosen its QE rules as it tries to lessen the divergence form the UK economy which is touted to loosen monetary policy significantly this summer. The aftermath of Brexit is still being priced in as the S&P downgraded the EU to AA from AA+ with a stable outlook as opposed to negative.


The BOE`s Carney stated that the BOE will probably be easing monetary policy in the summer as the bank attempt to navigate the uncertainty left behind after the Brexit vote. Carney was however confident that the uncertainty would fade in the medium term, leaving the UK stronger in the long term.

From a political stance, Teresa May is currently touted as the front runner to become the next leader of the Conservative Party after Boris Johnson announced that he would not be running in the election.


In a time were the S&P is downgrading sovereign ratings, it has stood behind the USA, affirming its AA+ rating with a stable outlook, which has seen the dollar firm with the help positive PMI, stabilizing Jobs data and a bullish Bullard who stated that negative rates are not a likely outcome for the US.

US equities finished firmly in the green with the DJIA finishing up 1.33%, the S&P 500 finished up 1.36% and the NASDAQ gained 1.21%.