One minute markets: Shares climb as risk-off mood eases

Investors snapped up sold-off shares during today’s trading session, with UK equity markets seeing gains across the board while the pound also steadied.

The FTSE 100 ended the session more than 1% higher at 6,533.8 points, while the FTSE 250 also jumped 1.5%, as bargain-hunters returned to buy up some of the sectors worst impacted by the Brexit turmoil.

Winners in the UK included Royal Bank of Scotland and housebuilder Taylor Wimpey – two stocks which have been in the cross-hairs of investors looking to cut their exposure to the UK’s domestic economy – ending the day up 6.5% and 5.4% respectively.

The top stock on the day was AB Foods, the owner of popular brands such as Kingsmill and Twinings, which jumped  8.9% after a positive trading update revealed group revenue was up 3% year-on-year.

Sold off challenger banks – such as Aldermore, which climbed 8.1% – helped buoy the FTSE 250 along with housebuilders such as Bovis Homes, which closed up 5.3%, and real estate groups such as Daejan Holdings, up 6.9%.

On the downside, some steam came out of the rally for precious metals groups, with blue chips Fresnillo and Randgold Resources both succumbing to profit-taking. The pair closed down 4.6% and 4.5% lighter.

Smaller miners also bore the brunt of the same trade, with gold miner Centamin off 4.8% and peer Hochschild down 11.2%, curtailing the staggering gains of more than 50% which both stocks have enjoyed since Brexit.

In currency markets, there was some positive news for the pound at last, with sterling back above $1.29 having dipped below that level earlier this week. Even gilt yields edged upwards as profit taking extended across the safe havens, climbing back to 0.81%.

Gold fell on the same trade, down 0.8% to $1,354, but oil struggled to hold on to gains made earlier in the day, with Brent crude down 3.2% to $47.27 as London closed.

 

The Brexitometer

In the wake of the crisis, and in order to provide a quick and easy snapshot of the real impact of Brexit on markets, we will be updating the Brexitometer daily, detailing the impact of the EU referendum result on UK markets.

FTSE 100: UP 3%

6,338 points at close on 23 June.

6,534 points at close on 7 July.

FTSE 250: DOWN 8%

17,334 points at close on 23 June.

15,899 points at close on 7 July.

FTSE All Share: UP 1%

3,481 points at close on 23 June.

3,515 points at close on 7 July.