Relief rally remains as Brexit sell-off reverses
The FTSE 100 has bounced back from the post-referendum crisis with another strong open, rising 2.4 per cent today.
Every single company rose higher in the first minutes of trading, as investors return to downtrodden stocks and the appetite for risks returns. The index stood at 6,286 – just 50points shy of where it closed before the UK voted to leave the EU.
The mid-cap FTSE 250, made up of more domestic firms which have felt the brunt of Brexit uncertainty, also climbed 2.8 per cent through the day, though it is still around nine per cent down in the past week.
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Picking up yesterday's trend, banks – the worst affected, along with housebuilders, since the vote – led the charge before falling back slightly in afternoon trading. Barclays climbed three per cent to 136p, but Royal Bank of Scotland was up just one per cent and Lloyds Banking Group was barely moved.
The fall has been so sharp at banking stocks that the government-owned Lloyds would need to climb another 20p – or 35 per cent – before the government can begin to think about selling off its stake at a profit.
Sterling also had a decent recovery, climbing 1.3 per cent to go above $1.35.