From Fleet Street Letter (Great Britain)-
With extensive media coverage over Brexit, there’s little to add. The Fleet Street Letter will take a break from politics and return to the änancial markets. What’s fascinating is that the FTSE 100 rallied from 5,800 to near 6,400; a high for the year.
The table shows prices on the morning of Thursday 30 June, versus their 2016 average. The FTSE 250 – the 250 British listed companies that follow the FTSE 100 by size – has fared worse. The pound has fallen against the dollar and the euro, yet it’s a shallow crisis on these moves. The gilt market – along with all major government bonds – has been strong.
Financial markets have stabilised, and the worst fears have been averted. However it’s notable that the FTSE 250 mid-caps have lagged the FTSE 100 large-caps. Since the end of May, companies with foreign earnings have tended to hold up well. To the downside, the biggest losers have been the house builders* and the domestic banks. RBS, Barclays and Lloyds have fared badly. HSBC and Standard Chartered have held their ground…