Markets have thrown a curve ball, as not only have they recovered from the Brexit losses, but the S&P 500 is on the cusp of a new all-time high. It makes world markets very complex. Who is really driving the bus? The SPX could be at all-time highs but the SSE remains 42% off its 2015 high and only 13% off its January low. The DAX remains light years from the 2015 top while the FTSE has been able to make it to the drop zone from last August where all the trouble really started.
The FTSE advantage? Whattaya nuts? The Cassandra’s told us that in the wake of the UK Brexit decision to leave the European Union there were going to be major, indeed very major, problems for the United Kingdom.
European equity markets are trading in the green for a second day on Wednesday, continuing to pare losses following Friday’sdramatic sell-off. The United States is expected to also open higher although these again remain some way off Thursday’ levels. While the initial panic from Brexit appeared to have eased, a huge amount of uncertainty remains which could continue to weigh on sentiment for a while.
As it became clear that the outcome of the UK referendum was going to be an exit from the European Union, the pound literally got pounded as it dropped from an overnight high of 1.50 to sub 1.33 when the news was confirmed, while the FTSE tanked nearly 10% at the open.