Home » NEWS » Banking & Finance » BREAKING: World stocks up as worries ease over Britain’s EU leave vote

BREAKING: World stocks up as worries ease over Britain’s EU leave vote

Global stocks rose sharply Wednesday as worries eased about the uncertainty that follows Britain’s vote to leave the European Union. The British pound also rose as talks got underway among European leaders on how to handle the situation.

Britain’s benchmark stock index, the FTSE 100, was up 2.6 percent to 6,298. It has not suffered much because many of its listed companies have global operation and the pound’s drop to a 31-year low will help their exports and boost the value of earnings repatriated to Britain. Domestic companies have taken a much bigger hit.

Germany’s DAX advanced 2 percent to 9,636 and France’s CAC 40 gained 2.8 percent to 4,202. Futures augured a positive start for Wall Street. Dow futures added 0.6 percent and S&P futures rose 0.7 percent.

Investors appeared to have set aside their anxiety over Britain’s vote, encouraged by solid data on the U.S. economy and housing market.

But analysts said market volatility could return any time and it is too early to say that investor confidence has made a full comeback since the vote for “Brexit,” a British exit from the EU.

“Stock markets may find it difficult to return immediately to the levels seen before last week’s vote with buyers being wary about being too aggressive in what may yet be just another volatile swing,” said Ric Spooner, chief market analyst at CMC Markets, in a commentary.

Global financial markets were rattled last Friday by the vote’s result, which many investors did not seem to anticipate. Stocks and oil fell, as did the pound, while bonds and gold rose thanks to their perceived status as safe havens. Ratings agency S&P slashed its top-shelf credit rating for the U.K.

The British currency recovered some of its losses this week but remained near its 31-year low. On Wednesday, the pound rose 0.5 percent to $1.3408. In other currencies, the yen, which strengthened sharply after the British referendum, lost some gains. The dollar rose to 102.69 yen from 102.63 yen. The euro rose to $1.1090 from $1.1080.

In Asia on Wednesday, Japan’s Nikkei 225 jumped 1.6 percent to 15,566.83 and South Korea’s Kospi gained 1 percent to 1,956.36. Hong Kong’s Hang Seng index added 1.3 percent to 20,436.12, while Australia’s S&P/ASX 200 rose 0.8 percent to 5,142.40. Stocks in mainland China, Taiwan, Singapore and Indonesia also were higher.

Benchmark U.S. crude rose 60 cents to $48.45 per barrel in New York. The contract added $1.52 on Tuesday. Brent crude, used to price international oils, gained 58 cents to $49.84 a barrel in London.


… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Associated Press

Leave a Reply

Your email address will not be published. Required fields are marked *