Brexit: Global stocks record gain

Global Stocks Listing

The UK and European banks, which has been a center of concern since Britain shocked global financial markets last Friday by voting to leave the European Union, were broadly higher, extending a recovery from two days of trading which knocked almost 40 percent off RBS and Barclays.

The Pound sterling and the euro, on Friday and Monday, gained around 0.4 percent respectively against the dollar.

Stocks in Europe

Stock markets in Frankfurt, Paris and London all gained more than 1.5 percent in early deals. Traders say the better mood was part the result of a swing in expectations towards easier monetary policy over the next six months, and part hopes that Britain will remain closely integrated with Europe whatever deal is done.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPPUS rose 1.0 percent to recoup around one-third of Friday’s stinging loss. Japan’s Nikkei .N225 climbed 1.6 percent, while Australian stocks added 0.8 percent.
Britain’s course out of the EU remains unknown, leaving the future of the entire bloc and its currency an open question.

“European leaders appear to want to move forward with Brexit plans as quickly as possible, but political turmoil within Britain suggests a quick turnaround is unlikely,” they wrote.
Sterling, down as much as 9 percent in trade-weighted terms on Monday compared to before the vote results, stood at $1.3397 GBP=, compared to the 31-year low of $1.3122. The euro rose to $1.1064 EUR=, while the dollar steadied at 102.33 yen JPY=.
The first Federal Reserve policymaker to comment since the vote, Governor Jerome Powell, said it had shifted global risks “to the downside”.
That only reinforced market expectations the Fed will no longer be able to hike U.S. rates this year, and could even be forced to cut if the domestic economy falters.
Japanese Prime Minister Shinzo Abe also urged the Bank of Japan to provide ample funds to markets.
In commodity markets, gold was firmer XAU= around $1,321.00 an ounce, off a low of $1,305.23 touched Tuesday.
Oil prices gained as U.S. crude oil futures CLc1 were up 59 cents at $48.44, while Brent crude LCOc1 rose 53 cents to $49.11.

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