LONDON: London share prices surged on Wednesday, wiping clean post-Brexit result losses, in the second straight day of a global recovery following a sharp sell-off sparked by Britain’s vote to quit the EU.
London’s benchmark FTSE 100 closed well over three percent higher and above its June 23 closing level, with a weaker British pound likely helping boost companies non-UK profits.
Paris and Frankfurt shares also pulled off strong increases, bouyed by a firmer Wall Street and Asian markets that earlier led the way on hopes that authorities will unveil fresh stimulus to counter the effects of Britain’s bombshell result.
However analysts warned of possible further jitters on the markets, given the many unknowns still about Britain’s path ahead as it handles its exit from the bloc and dealings with its EU partners.
“First the panic effect, then the rebound. That’s a well-known mechanism on financial markets,” said Christopher Dembik, an economist at Saxo Banque in Paris.
Copyright AFP (Agence France-Presse), 2016
Courtesy : BRecorder