Economy

U.K. Markets Rally From Bottom After Brexit Drop

Douglas A. McIntyre

Published: June 24, 2016 4:57 am

Last Updated: January 13, 2020 6:26 am

The only markets which have recovered from bottoms made by sell-offs in Asia and Europe are those in the U.K. The FTSE 100, which was off over 8% has come back to a drop of 4.2% at 6,067. Traders in Britain don’t appear to think the news is so bad after all.

Oddly, the German and French markets are down much more. The DAX is down 6% to 9,641. The CAC 40 is down 7.9% to 4,118

Clearly traders believe that the EU will get the worst of the bargain. Perhaps investors think that global trade with the U.K. will not weaken, even with its former EU partners. Too much is a stake to have a vote destroy entirely, an financial relationship which is decades old.

And, perhaps worries that other nations will leave the EU have weighed much more on it than on the U.K.  After all, the U.K. has already left.