Here is what you need to know.
The British pound made a fresh 31-year low. Another day, another fresh 31-year low for the British pound. Sterling sank to 1.2798 in overnight action as traders continued to punish the currency amid the fallout from the Brexit vote. According to Goldman Sachs, the pain isn’t over yet. Analysts Silvia Ardegna, Robin Brooks, and Michael Cahill think a “second leg of weakness” is coming, which could pressure the pound to 1.20. Currently, sterling is trading down 0.3% at 1.2985.
Bond yields continue to slide. The US 10-year yield pressed below 1.32% in early trade, making for the lowest reading on record. The move lower in yields isn’t relegated to just the US as Australia (1.86%), Italy (1.21%), and the UK (74 basis points) are among numerous other countries seeing yields put in record lows. The drop in yields has come amid renewed worries over global growth that have resurfaced following the Brexit vote.
UBS says “gold has entered a new phase.” The investment bank says risks to the global economy have made the yellow metal the go-to investment for the remainder of 2016. In a note to clients circulated on Tuesday, UBS strategist Joni Teves and her team raised their annual forecast for gold to an average of $1280 per ounce, up from $1225 per ounce. “Key drivers include: 1) low/negative real rates, 2) the view that the dollar has peaked against DM currencies, and 3) lingering macro risks,” the team wrote. Currently, the precious metal is up 1.3% at $1374 per ounce.
Copper inventories are piling up. Copper inventories at the London Metals Exchange-approved warehouses rose 10,525 tonnes to 198,925 tonnes, data showed. The jump in inventory made for the biggest copper stockpile in nearly a month. The metal is lower by 1.8% at $2.1465 per pound in New York trade.
Tesla says it alerted regulators about the fatal Autopilot crash. Tesla says it told federal authorities about the fatal Autopilot crash nine days after it occurred. The company released that information on Tuesday to set the record straight after it was criticised for not making the accident public before a federal investigation was announced. “Tesla does not find it necessary, nor does any automaker, to share the details of every accident that occur in a Tesla vehicle,” The company said in a recently released statement. “More than a million people die globally every year in car accidents, but automakers do not disclose each of these accidents to investors, let alone before those investigations are complete and without regard to what the results of those investigations end up being.”
Blackstone is selling medial and life-science properties. Real Estaste Investment Trust Ventas has agreed to buy virtually all of the medical and life sciences properties of Wexford Science & Technology LLC from Blackstone for $1.5 billion, according to a statement released by Ventas, cited by Bloomberg. The deal includes 23 properties and two development sites, which are home to tenants including Yale University, Wake Forest University and Alexion Pharmaceuticals Inc, Bloomberg reports.
Facebook’s old CTO has been appointed Twitter’s board. Bret Taylor, Facebook’s Chief Technology Officer from 2009 to 2012, will become the ninth member of Twitter’s board. Recently, Taylor has been running startup Quip, which has raised $45 million to date.
Stock markets around the world are in the red. France’s CAC (-2.3%) leads the decline in Europe after Japan’s Nikkei (-1.9%) paced the losses in Asia. S&P 500 futures are down 13.50 points at 2069.25.
Walgreens Boots Alliance reports ahead of the opening bell. The pharma giant is expected to earn an adjusted $1.14 per share on revenue of $29.72 billion, according to the Bloomberg consensus. Adjusted EPS has topped analyst expectations in six of the past eight quarters while revenue has fallen short of estimates seven of the past eight quarters, Bloomberg data shows.
US economic data flows. The trade balance will cross the wires at 8:30 a.m. ET before Markit PMI and ISM non-manufacturing are released at 9:45 a.m. ET and 10 a.m. ET, respectively. Then, at 2 p.m. ET, the latest FOMC minutes are due out. The US 10-year yield is down 4 bps at 1.34%.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.