Investing.com - Here are the top five things you need to know in financial markets on Monday, July 4:
1. Global stocks mostly higher amid stimulus hopes
Global stocks mostly extended gains early Monday, amid optimism that central banks around the world will step up monetary stimulus in the near-term to counteract the negative economic shock from the Brexit vote.
Shares in Asia closed higher Monday, as investors bet that policymakers in Japan and China will introduce fresh easing measures to encourage economic growth.
Meanwhile, European stocks struggled for direction, as traders paused for breath after a strong rally last week following the fallout from the U.K.'s referendum results.
Elsewhere, U.S. financial markets will be closed Monday for the Independence Day holiday, resulting in thin trading conditions.
2. George Osborne pledges to cut U.K. corporation tax
U.K. Chancellor George Osborne plans to cut the corporation tax in the U.K. to below 15% from the current 20% in an effort to lure business investment in a post-Brexit economy. Osborne announced the new tax target in an interview with the Financial Times published Sunday.
The pound was little changed against the dollar on Monday, staying close to 31-year lows, after data showed U.K. construction contracted at the fastest pace since 2009 in June as the impending vote on Britain’s European Union membership hindered residential building.
Meanwhile, the political fallout from Brexit continued as Nigel Farage, one of the most well-known proponents of the Brexit movement, announced he will step down as leader of the U.K. Independence Party.
3. Italian banks tumble as bailout reports shot down
Shares of Italian lenders tumbled on Monday after reports surfaced that Italy has no plans to defy European Union rules by pumping billions of euros of public money into its troubled banking sector.
"Italy has no intention of defying Brussels on the banks. We respect the rules and prefer market solutions for our banks," said a spokesman for Prime Minister Matteo Renzi, denying previous reports that said the country was ready to bail out its banking system if it came under pressure.
The news sent shares of a number of the country's lenders into the red with Banca Monte dei Paschi di Siena (MI:BMPS), Unicredit (MI:CRDI), Intesa Sanpaolo (MI:ISP) and Banco Popolare (MI:BAPO) being sold off.
4. Silver spikes above $21 for first time since 2014
Silver futures for September delivery spiked by more than 6% to hit a daily high of $21.22 a troy ounce, the most since July 2014, before giving back some gains to trade at $20.31, up 72.4 cents, or 3.7%, during morning hours in New York.
Silver futures soared $1.75, or 9.87%, last week, its best weekly performance since August 2013.
Meanwhile, gold prices jumped 1%, extending strong gains from last week, to hover just below its highest level in more than two years.
5. Oil prices inch higher as Nigeria militants claim fresh attacks
Oil prices pushed higher on Monday, as market players monitored more disruption to supplies from Nigeria.
The Niger Delta Avengers militant group has claimed responsibility for five new attacks on Nigeria's oil infrastructure over the weekend, dealing a blow to the government’s effort to enforce a cease-fire.
Brent was up 24 cents, or 0.5%, at $50.59 a barrel, while U.S. crude tacked on 20 cents, or 0.4%, to $49.19 a barrel.