United Kingdom

Welcome to the one year anniversary of the Brexit vote. Welcome also to the annual Russell rebalance, traditionally one of the busiest trading days of the year: according to Bloomberg, last year's rebalance helped propel a near record turnover of over 15 billion shares, as a result of the $8.5 trillion in stocks linked to the various Russell indices, many of which will be forced to find new owners after today's index recomposition. In fact, in four of the last five years, reconstitution day ranked in the 10 busiest trading sessions.

• European stock markets stumble as oil languishes near lows (Reuters)
• Some Trump Aides Want a New Leader at the Fed (BBG)
• Goal of Saudi Shake-Up: Drag Country Into the Modern Era (WSJ)
• Under fire in Washington, Trump back in campaign mode in Iowa (Reuters)
• Revenue Slides at Some Trump Businesses, but Vegas Tower Brings Windfall (WSJ)
• Trump, new Saudi crown prince share hardline views on Iran but risks abound (Reuters)
• Canada’s Plan for Managing Trump: Go Around Him (NYT)

US equity futures were marginally in the red, while Asian markets rose and European stocks dropped. WTI oil rose 0.6% to $42.79 as some suggest the time to go long has arrived; oil tumbled 2.3% in the previous session. The Bloomberg Dollar Spot Index fell 0.1 percent.

Here are the main market developments while you were sleeping.

In an eventful overnight session which saw a historic transition in Saudi Arabia, an unexpected Republican victory in the Georgia Special Election, China's inclusion in the MSCI EM index and Travis Kalanick's resignation, S&P futures continued to fall, alongside stock markets in Asia and Europe, while oil prices extended their drop despite a larger than expected draw reported by API on Tuesday.

Authored by Ann Pettifor via RenegadeInc.com,

Britain is preparing to leave the European Union with no real plan and a government in disarray, writes economist, Ann Pettifor. How can we trust economists at the Treasury not to impose more disastrous policies?

If the British economy crashes as a result of Brexit, it will not vindicate economists. It will simply illustrate once again, their failure.