FTSE 100 Recovery Nears EU Exit Vote High

Stock markets and the pound have continued their uneasy recovery in the wake of the post-Brexit vote hammering of values.

The FTSE 100 was 2.3% up in mid afternoon trade at 6282 - following on from a near-160 point or 2.6% rise on Tuesday .

It meant the market was just over 50 points off its pre-result level of last Thursday's close, 6338.

Banking stocks and housebuilders were among the winners while travel-related stocks lost out following the terror attack in Turkey that left dozens dead at Istanbul's main airport.

Major stock indices around the world surged higher for a second day while the mid-cap FTSE 250 was up a further 2%.

The pound clawed back some more ground on the US dollar - trading over a cent up at $1.35 - having fallen to fresh 31-year lows earlier in the week .

It was also higher against the euro at €1.22.

Brent crude oil continued to nudge back towards the $50 a barrel mark after falls attributed to worries that a Brexit vote would damage expectations of a recovery in world demand.

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.

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."