Yahoo Finance FTSE 100 Recovers From EU Exit Vote Losses
The FTSE 100 has fought back to recover all the ground lost since shares were hammered by last week's shock Brexit vote.
A two-day rally saw London's leading stock index close at 6360, above the 6338 level where it finished on Thursday.
Britain's vote to leave the EU had propelled the FTSE 100 into a downward spiral wiping more than £90bn off the value of its constituent companies over the course of Friday and Monday.
But investors cast aside the jitters that inspired the sell off to return the index to its previous position by the close on Wednesday with an increase of 220 points or 3.6%, following a near-160 point or 2.6% rise on Tuesday.
London's FTSE 250 Index - more representative of British business than the globally-focused FTSE 100 - was up 3.2%.
The pound also rose, lifting by a cent against the US dollar to $1.34 after the vote had seen it sink to a 31-year low against the US currency. It was also higher against the euro at around €1.21.
Oil climbed too, with Brent crude touching $50 a barrel, while European stock markets saw strong performances and Wall Street's S&P 500 rose 1.6%.
On the FTSE 100, miners and house builders led the risers while trave operator TUI (LSE: 0NLA.L - news) was the biggest loser following the terror attack in Turkey that left dozens dead at Istanbul's main airport.
UK stocks have continued to bounce despite a string of warnings in recent days from companies on short and long-term risks from the referendum.
Pub firm Greene King (Other OTC: GKNGY - news) was the latest to warn on the potential for a drop in consumer confidence as it reported a 52% increase in annual pre-tax profits to £256.5m.
Stagecoach, the train and bus operator, echoed that sentiment - also blaming uncertainty for its caution.
Electrical to mobile phone retail giant Dixons Carphone (Other OTC: DSITF - news) struck a different tone, saying it would "find opportunities for additional growth" despite the volatility caused by an exit vote, adding that weaker rivals might fall away.
Market experts have said the bounce in stock values is likely to be shaky and potentially short-lived because of the lack of clarity on the UK's future - both politically and economically.
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Joe Rundle, head of trading at ETX Capital, said: "Stocks and the pound are continuing to firm but the post-Brexit reality will bite sooner or later.
"What we’re seeing in the FTSE is hope in Britain being able to ride it out by remaining part of the single market. This looks like wishful thinking."
Michael Hewson, chief market analyst at CMC Markets (LSE: CMCX.L - news) , said: "With (Other OTC: WWTH - news) no likelihood of Article 50 of the Lisbon Treaty getting triggered any time soon it seems that the status quo isn't likely to change in the short term.
"Whilst that doesn't remove the uncertainty with respect to the eventual outcome it also means that markets are going to have plenty of time to settle into their new found reality and equilibrium."
