Stock futures tread higher as Brexit fears ebb

[June 29, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures were higher for a second day as the initial panic surrounding Britain's vote to leave the European Union settled and investors sought out bargains.

* The "Brexit" verdict on Friday sent shockwaves through global markets and wiped out about $3 trillion in a two-day selloff.

* Banks and technology stocks - worst hit since the referendum - were up on Wednesday for the second day.

* Wall Street closed higher on Tuesday as investors took stock of the impact of the vote on U.S. markets and strong data raised hopes of an economic recovery.

* Investors are now pinning hopes that central banks around the world will ease monetary policy to weather the storm as Britain and the EU chalk out the next steps for the country's exit from the trading bloc.

* The vote has shut every window of opportunity for an interest rate hike by the U.S. Federal Reserve this year. Traders have priced in a mere 17 percent chance of a hike as late as December.

* Investors will also keep an eye on data to assess when the Fed will be able to raise rates.

* Data on Wednesday is likely to show consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.4 percent after surging 1.0 percent in April. The data is expected at 8:30 a.m. ET (1230 GMT)

* Nike dropped 2.2 percent to $51.90 in premarket trading after reporting disappointing quarterly sales and forecast.

* PrivateBanCorp jumped more than 25 percent to $45 after agreeing to be bought by Canadian Imperial Bank of Commerce for about $3.8 billion.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, New York, U.S. June 28, 2016. REUTERS/Brendan McDermid

* Williams Cos was down 3.6 percent at $19.90 after Energy Transfer Equity terminated its merger with the company. Energy Transfer was up 1.3 percent at $14.60.

Futures snapshot at 7:16 a.m. ET:

* Dow e-minis were up 104 points, or 0.6 percent, with 32,219 contracts changing hands.

* S&P 500 e-minis were up 12.5 points, or 0.62 percent, with 235,867 contracts traded.

* Nasdaq 100 e-minis <NQc1> were up 30.25 points, or 0.71 percent, on volume of 26,285 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

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