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    US economy gains momentum

    U.S. stocks rose Wednesday, helped by a reversal in oil prices and gains in health care stocks.The major U.S. indexes came off lows to trade higher earlier in the day. The benchmark 10-year Treasury yield came off a record low of 1.321 percent to trade near 1.39 percent. The Japanese yen was near 101 against the U.S. dollar after earlier threatening to break below 100. 

    Federal Reserve policymakers decided in June that interest rate hikes should stay on hold until they have a handle on the consequences of Britain’s vote on EU membership, according to the minutes from the Fed’s June policy meeting released on Wednesday. The minutes for the June 14-15 meeting, which took place ahead of the June 23 referendum in which Britons voted to leave the European Union, showed widespread unease over the so-called "Brexit" vote, including among voting members on the rate-setting Federal Open Market Committee.

    The pace of growth in the U.S. economy’s service sector increased in June by the fastest pace in seven months, according to an industry report released on Wednesday. The Institute for Supply Management ( said its index of non-manufacturing activity rose to 56.5 from 52.9 the month before. The reading was above expectations of 53.3 from a Bloomberg poll of economists and was the highest reading since November. 

    US bonds are surging amid a risk-off sentiment following Brexit and it means fewer rate hikes are being priced in by the market. While hikes looked inevitable a while ago and many saw them coming as soon as July, now there’s a serious discussion if the Fed increases rates at all. Although bonds pared their gains during U.S. session, yields are still ultra low.

    Any person acting on this information does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.


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