Stocks rise as markets get over ‘Brexit’ shock
Tokyo — World stock markets mostly rose Thursday as investors gradually overcame the shock set off by Britain’s vote last week to leave the European Union.
Keeping score: France’s CAC 40 rose 0.7 percent to 4,224 and Germany’s DAX edged up 0.2 percent to 9,632. Britain’s FTSE 100 rose 0.2 percent to 6,376, helped by the pound’s 10 percent drop since last week. U.S. shares were also set to drift higher, with Dow and S&P 500 futures both up 0.2 percent.
Brexit: Post-“Brexit” worries have been easing in recent trading sessions. Last week, Britain voted in a referendum to leave the EU, sending stocks and the pound reeling. Britain’s stock market has recouped its losses, though that is largely thanks to the pound’s drop, which helps the big companies’ overseas earnings. Other indexes of companies more focused on the British economy are still down sharply. Globally, however, the worries are shifting from short-term turmoil to longer-term risks, analysts say.
The quote: “The Brexit is only four market-days old, and equities are right back where they’ve been all year — running sideways,” according to a report by the Group Strategic Marketing & Communications of DBS Bank in Hong Kong.
Asia’s day: Japan’s benchmark Nikkei 225 edged up 0.1 percent to finish at 15575.92, while South Korea’s Kospi rose 0.7 percent to 1,970.35. Australia’s S&P/ASX 200 added 1.8 percent to 5,233.40. Hong Kong’s Hang Seng index rose 1.5 percent to 20,734.77. The Shanghai Composite was little changed, inching down nearly 0.1 percent to 2,929.61.
Energy: In energy trading, benchmark U.S. crude dipped 44 cents to $49.44 a barrel in New York. It had added $2.03 Wednesday. Brent crude, used to price international oils, fell 40 cents to $50.92 a barrel in London.
Currencies: The yen, seen as a safe haven, strengthened sharply after the British referendum, but the volatility has since settled. The dollar was trading at 102.82 yen, up from 102.30 yen. The pound was up 0.4 percent at $1.3479, still down sharply from the pre-vote level of $1.50. The euro rose to $1.1145 from $1.107.