U.S. stocks are turning higher on Wednesday morning as investors shift away from concerns of a Brexit in Britain during their upcoming June 23rd referendum vote and focus instead on the likely scenario of the U.S. Federal Reserve holding back on raising interest rates this month.
U.S. stocks have come under pressure over the past 4 days and drifted lower yesterday after a new YouGov poll showed the “Leave EU” position had a +7 advantage.
The Leave side has 46 percent compared with 39 percent for the Remain side.
Investors have moved to safe assets such as the 10 year German bund whose yield fell to negative 0.006 yesterday, its lowest point in history while the yield on the 10 year U.S. treasury reached the lowest level in 3 1/2 years after dropping to 1.57 percent.
Today the Bureau of Labor Statistics reported the U.S. Producer Price Index for May came in slightly higher than expected.
May’s PPI rose 0.4 percent in May, higher than the 0.3 percent consensus estimate from briefing.com, after rising 0.2 percent in April.
Core PPI which removes food, energy and trade services, increased 0.1 percent in May, matching consensus estimates from briefing.com
Yesterday U.S. retail sales for May beat estimates and rose 0.5 percent, higher that the 0.3 consensus estimate from briefing.com. but well below the 1.3 percent level in April which was the strongest increase since March 2015.
Written by: Johnathan Schweitzer