US futures are rebounding alongside European stocks and the pound in early trading on Tuesday.
Markets are rising after a few ugly days following the Brexit vote last week, which erased the gains US stocks had made this year.
Near 7:20 a.m. ET, Dow futures were up 181 points (1.07%), S&P 500 futures were up 20 points (1.01%) and Nasdaq futures were up 43 points (1.03%.)
The Euro Stoxx 50 gained 2.3%, while the FTSE 100 rose 2.37%.
It’s still very early days since last Thursday, when Britain voted to leave the European Union.
It’s also still too soon to tell the full implications of Brexit for the UK, although some analysts have forecast a slowdown in the country’s growth that would lead to recession.
But for now, it appears investors are bargain hunting, looking for assets that may have been punished too severely in the last few days. That’s “as opposed to [the] emergence of genuine support as markets adjust to a new normal and the prospect of the UK outside the EU,” said Mike van Dulken of Accendo Markets.
The pound, which lost almost 4% on Monday in addition to the 8% decline Friday, rose nearly 1% against the dollar on Tuesday.
In US economic data, the third estimate of first-quarter US GDP will be released at 8:30 a.m. ET. S&P/Case-Shiller home prices will cross at 9, and the Conference Board’s consumer confidence index at 10.
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