The FTSE 100 opened down 0.8% in the second day of trading following the Brexit vote decision while 10-year gilt yields have fallen to an historic 1%, as Chancellor Osborne moved to reassure markets with an early morning statement saying the UK was “open for business”. The FTSE 100 was trading at 6,090 this morning, down 0.8%, with the biggest fallers including easyJet which fell 8% and Barclays 6% lower.
Commodities were the biggest risers with AngloAmerican, Randgold Resources and Rio Tinto all up more than 1.5%.
However, the FTSE 250 is 2% lower this morning after suffering its worst ever trading day on Friday, when it fell 7% with banks and housebuilders among the worst victims.
Meanwhile, 10-year gilt yields have fallen to 1% for the first time ever in their history as investors seek the safety of government bonds.
Futures markets had predicted an opening fall of 3% today for the FTSE 100 but Chancellor George Osborne managed to calm markets in a speech earlier this morning, his first comments since the referendum decision on Friday.
The Chancellor said the UK economy was “about as strong as it could be to face the challenges ahead” and “open for business”.
He stressed contingency plans were in place with the Bank of England to support banks and the smooth functioning of markets and the UK was “open for business”. READ THE ENTIRE ARTICLE >>
[Source: Investment Week – by Katrina Lloyd – June 27, 2016]