Sterling and stock sell offs have abated this morning as markets begin to steady after strong falls since Friday (June 24) morning.
Yesterday (June 27), markets continued to react to the UK’s decision to leave the EU with sterling falling to a 31-year low against the dollar and the FTSE 100 and 250 seeing strong falls.
However, by market opening today (June 28), stocks opened mildly stronger and sterling made small gains against the dollar and the euro.
The FTSE 100 is up 2.3 per cent from yesterday’s close with the FTSE 250 up 2.2 per cent.
However, despite the slight gains, investors are still reeling from the sell-off. Since Thursday (June 23), before polls closed, the FTSE 100 is down 3.4 per cent and the FTSE 250 – which houses stocks more focused on the UK economy – down 11.6 per cent.
After yesterday’s low point for sterling, it is now up 0.8 per cent to $1.332. Against the euro it is up 0.3 per cent to €1.203.
Equally, today’s small gains bring short relief with sterling having fallen 10.5 per cent against the dollar and 8 per cent against the euro since markets opened after the result on Friday (June 24) morning.
Investors sought safety in recent days with gilt yields falling below 1 per cent for the first time in history. Today, the 10-year gilt yield has risen slightly by 4 basis points, but remains below 1 per cent at 0.98 per cent.
