Last week the European stock markets were dominated by bears. During the whole week, French CAC40 declined by 2%, British FTSE250 decreased by 1.8% and German DAX deteriorated by 1.5%. Brexit continued to generate the uncertainty. Moreover, it had adversely impact on the market sentiment. To add insult to injury, the new burden for the stock markets was information on the problems of the European banks (especially Italian banks) and difficulties of the several British investment funds. Investors learnt the latest economic data as well. In the Eurozone, the dynamic of the retail sales stood at 1.6% y/y vs 1.8% expected.

In the last week of June the market sentiment was bullish. In Europe, French CAC40 rose by 4.1%, British FTSE250 went up by 2.4% and German DAX took off by 2.3%. In the US, the NASDAQ increased by 3.3%, while the S&P500 and the DJI soared by 3.2%. As a result, within five days major stock indices recovered all the losses which had been reported on “Brexit Black Friday”. The latest macroeconomic data contributed to improving the market tone. In the US, the GDP growth for the first quarter of 2016 stood at 2.1% y/y and 1.1% q/q. These results exceeded the market expectations.

The highlight of the past week was the British referendum. In the first part of the week the market sentiment was bullish because investors believed that the Great Britain would remain in the EU. Nonetheless, Friday’s results of the referendum showed the advantage of the Brexit’s supporters. As a result, major stock indices started to fall dynamically. During the whole week, French CAC40 declined by 2.1%, British FTSE250 fell by 2% and German DAX deteriorated by 0.8%. In the US, the NASDAQ decreased by 1.9%, while the S&P500 and the DJI went down by 1.6%. It is worth noting that the weekly results did not reflect the scale of the Friday declines – some indices slipped by 8%.

Last week major stock indices liked the red color. During the whole week French CAC40 declined by 2.6%, British FTSE250 deteriorated by 2.4% and German DAX fell by 2.1%. In the US, the NASDAQ went down by 1.9%, the S&P500 slipped by 1.2% and the DJI decreased by 1.1%. The global stock exchanges were filled with fear because of a high probability of Brexit. As a result, the market sentiment was bearish. Nonetheless, Sunday’s polls showed that the supporters of Bremain gained a slight advantage. Last week there was a meeting of the FOMC as well. The interest rates remained unchanged.

Certainly, the second week of June was not successful for investors. The global market sentiment was bearish. Thus, most of the major stock indices ended last week in negative territory. In Europe, German DAX declined by 2.7%, French CAC40 went down by 2.6% and British FTSE250 deteriorated by 1.4%. In the US, the DJI increased by 0.3%, the NASDAQ slipped by 1% and the S&P500 decreased by 0.3%. Investors focused on the upcoming referendum in the Great Britain. There were plenty of indications which confirmed a high probability of the Brexit. What is more, the UEFA European Football Championship began on Friday.