Brexit recovery: Markets stabilise as pound REBOUNDS and FTSE 100 fights back

By 

A market trader

MARKETS in Britain and Europe finally rallied from the Brexit fallout today, with the value of the pound rebounding and bank stocks up.

More than £40 billion has been added to the value of Britain's biggest companies after the financial markets staged a fightback following punishing falls in the wake of the Brexit vote.
After two days of carnage, the FTSE 100 index was up 2.6%, or 158.19 points to 6140.39, at close today.
The FTSE 250 – which is usually seen as a closer representative of the UK economy because it contains more British-based businesses – has also bounced by 2.71 per cent. 
Sterling also rose more than 0.7% to just over 1.33 US dollars after dropping to a 31-year low against the greenback.
Such signs of recovery will be welcomed across the nation as bank stocks took such a hammering that trading had to be temporarily suspended yesterday.
he pound was also 0.4% higher at 1.20 euro by the end of the day.
Equities across Europe were also rallying strongly, with the Cac 40 in France up 2.7% and Germany's Dax 1.9% higher.
Oil prices joined in the bounce back, with Brent crude 1% higher at 47.64 US dollars a barrel.
Today's more positive trading comes despite Britain's credit rating being downgraded from AAA status, which should theoretically make it more expensive for the UK to borrow money on the international markets. 
Mike van Dulken, of Accendo Markets said: "A positive opening call comes in spite of a mixed Asian session and negative US close after ratings agencies S&P and Fitch joined Moody’s in downgrading the UK’s credit rating post Brexit. 
"This and political woes sent GBP to fresh lows overnight but it has since bounced, strengthening for the first time since Friday’s surprise referendum result on hopes policymakers are working to limit the economic fallout." 
This morning shares in Barclays climbed 5.9 per cent, Lloyds advanced 3.8 per cent and RBS added 2.8 per cent, whilst British manufacturers like Rolls Royce said the lower value of the pound should boost exports. 

However experts also warned that even as calm descends on financial markets it is too early to sound the all-clear for Britain's battered financial institutions. 
Connor Campbell, of SpreadEx, said: "Of course this may well be a dead cat bounce, but one imagines given the state they are in the global markets will welcome any respite they can.
"Rising just shy of two per cent, largely thanks to Barclays, Lloyds and RBS holding off on any more losses, the FTSE climbed near 6100 this Tuesday, meaning it actually lingered below 6000 for longer before the referendum than after the results were announced. 
"Of course the FTSE’s fall has to be framed in the context of sterling’s slide, the decimation of the pound-dollar conversion rate leaving the UK index in a far worse state than that it initially appears.
"The main change from Monday to Tuesday seems to be the performance of the banks. 
"Accepting around £3 billion in a Bank of England liquidity auction this morning, the UK's banking sector is looking a bit rosier after having the colour completely drain from its face at the start of the week."
The bounce comes amid increasing indications from across the political spectrum that Britain will not leave the European single market, despite the British people voting to quit the EU. 


However experts also warned that even as calm descends on financial markets it is too early to sound the all-clear for Britain's battered financial institutions. 
Connor Campbell, of SpreadEx, said: "Of course this may well be a dead cat bounce, but one imagines given the state they are in the global markets will welcome any respite they can.
"Rising just shy of two per cent, largely thanks to Barclays, Lloyds and RBS holding off on any more losses, the FTSE climbed near 6100 this Tuesday, meaning it actually lingered below 6000 for longer before the referendum than after the results were announced. 
"Of course the FTSE’s fall has to be framed in the context of sterling’s slide, the decimation of the pound-dollar conversion rate leaving the UK index in a far worse state than that it initially appears.
"The main change from Monday to Tuesday seems to be the performance of the banks. 
"Accepting around £3 billion in a Bank of England liquidity auction this morning, the UK's banking sector is looking a bit rosier after having the colour completely drain from its face at the start of the week."
The bounce comes amid increasing indications from across the political spectrum that Britain will not leave the European single market, despite the British people voting to quit the EU. 
And investors seem to have disregarded a pronouncement from Chancellor George Osborne, who is likely to leave his post when a new Prime Minister is appointed, that Britain will have to raise taxes and slash spending because of Brexit. 
Mr Osborne said: "We are absolutely going to have to provide fiscal security to people, we are going to have to show the country and the world that the government can live within its means.
Asked if that meant tax rises and spending cuts, he said: "Yes, absolutely."
Following his interview, the unpopular Chancellor unsurprisingly also ruled himself out of becoming the next prime minister. 
His interview came after Rolls-Royce confirmed its commitment to the UK and said Brexit could help boost exports because the pound has been overvalued in recent months. 
The company said this morning: "Although this is not the outcome the company would have chosen, Rolls-Royce remains committed to the United Kingdom where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development."
Comment:

Gee, Western civilization did NOT come to a crashing end like the Remainers predicted. The UK is tougher than they thought and is already bouncing back.

Of course we all know that the Remainers are full of sh*t anyway,  Their campaign to frighten people into voting to remain became known as "Project Fear".  Thank God the British people kept their heads and voted sensibly.
It seems the main body of Remainers was among young adults who were born AFTER the UK joined the EU and have never known anything else, and the elderly who were afraid of economic collapse that the country would not recover from in their lifetimes.  
When it comes to the youngsters, I say to them, face the future without fear.  But as to the oldsters, I can understand their concerns.  They worked hard all their lives and now they are retired and the last thing they need is for an economic collapse to ruin whatever they have left, which if lost, they will be unable to earn back because of their age.
Fortunately for them, they need not worry.  Despite what the naysayers are saying, Britain is already recovering and has a good future ahead WITHOUT interference from outsiders and globalists.
As they say, "The sun never sets on the British Empire."  Of course the sun never sets on the British Empire because God doesn't trust the British in the dark! LOL  I heard an Englishman say that once.
Dan 88!

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