Markets recover from Brexit losses


Investors are shrugging off the panic that gripped global markets in the wake of Britain's decision to leave the European Union.

The Dow Jones Industrial Average closed higher for a second day. It added 284 points to close 1.64 percent higher at 17,694.

The Dow has now recovered more than half of its Brexit losses.

The rally illustrates why experts told Newshub earlier this week that investors should not panic about the sell-off.

Boeing and Goldman Sachs led the rally. Boeing rose two and a half percent and Goldman Sachs gained 2.17 percent.

The S&P500 added 1.7 percent and the Nasdaq rose 1.86 percent.

European stocks also rallied for a second day.

Britain's FTSE 100 closed at its highest level since April, rising 3.6 percent to close at 6,360 points.

That has taken it above last Thursday's close of 6,338, meaning it has erased all of the 8.7 percent loss it suffered in the wake of the Brexit vote.

However the FTSE 250 is still almost 8 percent down from where it was before the Brexit vote.

The FTSE 250 is considered a better barometer of the UK economy because it contains more smaller British companies. The FTSE 100 has a larger exposure to mining and international companies.

Analysts say the FTSE 100 is still down 9 percent in US dollars, due to the plunge in the value of the Pound against the US dollar.

The pan-European STOXX Europe 600 gained 3 percent. But it is still down nearly 6 per cent from where it was before the referendum.

Germany's DAX added 1.75 percent and France's CAC added 2.6 percent.

The New Zealand dollar has gained against all the major currencies overnight.

It is trading at 71.12 US cents, 95.51 Australian cents, 52.84 British pence and 63.95 Euro cents.


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