Temporary stability in stock and oil Price

Fear is hunting the traders and investors in the world with the sudden rebound of the stock and oil price in the market. The stock market showed extreme volatility on the last Wednesday keeping the Brexit news in mind. The uncertainty of the Brexit decision is now little bit eased due to the Central Bank extend hand and commitment for dealing this situation.

The Wall Street faced the positive data in this year with the skyrocketing oil price. Though the traders were overly concern about the Brexit loss but it seems that the FTSE 100 has successfully recovered from the immediate loss followed by the Brexit news release. Surprisingly the FTSE 100 has managed to have a close higher than the month of April.

Britain economy is in great trouble since the people voted them out of the European Union causing a massive surprise among the investors and traders. Most popular Barclays (L: BARC) and RBS (L:RBS). shares have been dropped by 40% due to extended recovery session of two days. To be precise ,the surprise action by the Britain has shaken the total economy of the world and filled the market with extreme volatility.

The sudden effect of the vote casting also boosted the SX7P for the two consecutive days which tends to be the major index of European Bank. Though the bullish scenario of SX7P was outstanding phenomena in the financial industry after the massive shock yet the market could barely meet up the incurred financial loss of Brexit. Keeping the term referendum in mind the stock market in Frankfurt, Paris and London rallied up significantly for 2 percent.

Though many professional believe that the initial panic has been erased from the market due to the Brexit but the leading currency analyst Craig Erlam suggests that there is still plenty of action yet to happen to center the Brexit. Professional traders and investors have reacted to the statement very positively and still they are not fully prepared to be exposed to the high volatility market which is totally uncertain.

Many people might be wondering which financial instrument was affected the most. According to recent data, the S&P 500 financial stock seems to have the largest impact of Brexit news .The news eventually helped the SPSY heavy rally for 1.13 percent.

The great Britain pound seems to be strengthened on Friday and Monday with a strong recovery of 1.4 percent at $ 1.3522 against the mighty dollar. Many professional currency analysts have considered the strong recovery as an early indication of strong volatility centering the referendum.

The current drawdown of the inventories and Brexit event caused the oil price to  jumped up significantly ,which was tempered by the looming strike of the Norwegian oil and gas field workers.

Oil prices jumped  larger than expected after the weekly drawdown in inventories, boosting  its rally on the fading concerns over Brexit and a looming strike by Norwegian oil and gas field workers. The global impact helped the US crude oil to boost up $1.23 at $49.06.On the contrary, the Brent Crude also rallied up by  1.18cent to $49.76.Keeping the data in mind gold farmer was having the much stable scenario with $1323.50 per ounce setting the low at $ 1305.23 on Tuesday.