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Stock & Shares

In a record rout, Brexit wipes $3tn (£2.25tn) off global shares

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It may seem curious that shares in London are rising, hours after Britain lost its AAA credit rating.

But Tony Cross, market analyst at Trustnet Direct, reckons S&P’s downgrade may actually be encouraging investors back into the market.

It still seems as if we’re a long way from the dust settling, but the FTSE-100 is starting Tuesday’s session with a triple digit bounce. Yes we’ve seen three ratings downgrades for the UK overnight, but taking a glass-half-full perspective, this also means that just a little of the uncertainty is starting to ebb away.

Some stocks have taken a while to clear the auction, but this is a case of bargain hunters clamouring to get in.

And there could be bargains on the table, if you think Brexit won’t cause economic mayhem.

Take housebuilder Persimmon, for example. Its shares are up 7% at £14.07. Last Thursday, they cost £21 each.

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Paul

The author Paul