We could see markets rapidly falling after result of the British referendum. That´s not true anymore, after two trading days with sharp declines, today were markets rising.
After equities throughout the world lost more than 3 trillion dollars of market value in two days, there was finally a rebound. This was led by financials, banks were among top gainers today, Barclays was up 6,3%, Citigroup jumped more than 5% and JP Morgan rose 3,31%, to mention some of them.
European benchmarks opened higher amid rumors politicians will do whatever is needed to keep economy up and investors hunting for bargains. Index FTSE 100 closed gaining 2,64% for today, French index CAC 40 jumped 2,61% and German index DAX rose 1,93%.
Boosted by better than expected economic data, US stock indexes opened higher as well. Having its best day since March this year, S&P 500 rose 1,78% today, with all 10 sectors up. Dow Jones index and NASDAQ Composite gained 1,57% and 2,12% respectively.
Crude oil soared as well, rising 3% today. British pound strengthened about 0,7% against dollar and 2,20% against Japanese yen.
Despite these gains, there are still lots of questions about next steps of Britain leaving the EU, which arises concerns for banks operating in London. We will definitely see higher volatility in coming weeks.