Market musings: Shares claw back some ground as bargain hunters emerge

Global markets bounced today as bargain hunters braved the Brexit-induced storm which has erupted over markets, propping up stocks around the world.

In the eye of the storm, the UK’s FTSE 100 finished the session up 2.6%, led by Hargreaves Lansdown, the fund platform giant, which closed 8.9% firmer. Despite the steep gains it remains well below pre-Brexit levels seen last week.

Meanwhile, the bruised and battered banks and housebuilders also recovered some of their collective losses, with Barclays up 6% and Lloyds climbing 5.8%, although there was no respite for Royal Bank of Scotland which dipped once more, albeit marginally.

Losers were few and far between today on London’s blue chip index, but a handful of mining stocks – including precious metals focused Randgold Resources and Fresnillo – succumbed to profit-taking.

Overseas markets followed a similar pattern, with the US S&P 500 ahead by 1.1% shortly after London closed, while the German DAX also finished up 1.9%.

Not to be outdone, sterling also steadied against a basket of currencies including the US dollar, climbing off lows to trade at $1.33. However, the gains were muted, and it remains at a multi-decade low versus the greenback.

Other risk assets also enjoyed gains, with Brent crude up 1.5% to $47.87 a barrel, while the safe haven trade saw some profit-taking of its own.

Gold, one of the most popular and easy to access options, shed 0.6% to trade at $1,314, while 10-year gilts saw yields creep slightly higher, to 0.98%.