Good morning! Here’s what you need to know in markets on Wednesday.
Stocks in Asia are higher. Asian shares came within reach of testing their 2016 peak on Wednesday as prospects of solid U.S. growth and accommodative economic policy in major countries whet investors risk appetite damaged by uncertainty from Brexit.
US equities closed at new all-time highs for a second day running. The Dow Jones Industrial Average rose above its previous closing and intraday peaks in early trading on Tuesday — just one day after the S&P 500 closed at a record high. Indexes had previously approached all-time highs right ahead of the UK’s vote to leave the EU, but then cratered amid investor uncertainty.
Rich Americans are hoarding cash. Wealthy U.S. investors are holding record cash balances out of fear that the U.S. presidential election will wreak havoc on their retirement accounts, Bob McCann, a senior UBS Group AG executive said.
A bunch of ugly warning signs are bubbling up in Saudi Arabia. The state statistics office reported that, overall, the kingdom’s first-quarter GDP grew by 1.5% compared with the prior year, and the fourth-quarter rate was revised down to up 1.8%, from up 3.6%. That’s the lowest growth since the first quarter of 2013, according to Reuters.
Irish GDP skyrocketed in 2015. Ireland’s economy grew an incredible 26.3% in 2015,according to new data released by the country’s Central Statistics Office on Tuesday. The rise in GDP came as a result of a combination of one-off factors, including aircraft purchases, corporate restructuring and companies re-locating assets to Ireland.
The Bank of Canada will make its latest interest rate decision on Wednesday. BoC governor Stephen Poloz is widely expected to leave the country’s base rate at 0.5% when the decision is announced at 3:00 p.m. BST (10:00 a.m. ET).
British Prime Minister David Cameron will step down on Wednesday. Current Home Secretary and new Conservative Party leader Theresa May will take his place as the prime minister to navigate the UK’s decision to leave the European Union.
Jeremy Corbyn WILL be on the ballot for the upcoming Labour leadership contest. The National Executive Committee (NEC) voted in favour of Corbyn going straight onto the ballot, meaning he will not be required to secure nominations from 51 MPs and MEPs in order to fight for his leadership.
Greece is still struggling for a brighter future a year after its bailout. Many of its citizens view the present as joyless and the future as grim.
Airbus sold a massive amount of jets in one day. The aircraft manufacturer closed four deals on Tuesday worth up to $23.5 billion.
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