No sign of Brexit blues as FTSE 100 hits 12-month high and FTSE 250 back in the black
Stock markets have soared again today off the back of strong economic data out this morning, reaching new post-referendum highs.
The FTSE 100 has climbed to a 12-month high today after data from the Office for National Statistics (ONS) showed the UK economy expanded by 0.6 per cent in the second quarter of the year, ahead of expectations, while the FTSE 250 surged back to pre-referendum levels.
The bluechip index was up 0.7 per cent to 6,768. If it holds on it will mark the highest level for the FTSE 100 since 17 July 2015.
The smaller FTSE 250 index was up a massive 1.7 per cent to 17,354 – 21 points ahead of the level it closed at on 23 June, completely eradicating its dramatic post-referendum losses.
The FTSE 250 plunged by 14 per cent in the two trading days after the referendum, but has staged a remarkable recovery. The smaller market is seen as a slightly better indicator of the UK economy as only around half of total earnings are from abroad, compared to more than three-quarters on the larger FTSE 100.
The bounce in the FTSE 100 has been led higher by the likes of GlaxoSmithKline, up 19 per cent since the vote, who have benefitted from sterling's sharp depreciation.