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Stocks gain as Brexit nerves settle

Wednesday, June 29, 2016 - 01:50

European and Asian stock markets built on a recovery from the shattering aftermath of last week's Brexit vote. As Laura Frikberg reports, investors wagered central banks would ultimately ride to the rescue with more stimulus.

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Investors breathe a collective sigh of relief, as markets rally for a second day. Asia-Pacific shares are up 1 percent, Japan's Nikkei has climbed by 1.6. European shares are up too, that fraught Friday when Britain voted for a Brexit almost appearing a distant memory. But not quite. (SOUNDBITE) (English) IG, MARKET ANALYST, CHRIS BEAUCHAMP SAYING: "It is still a bear market, so I would be cautious of saying everything is fine and hunky dory and there's big headline risk at the moment, but certainly it has been remarkable to see the market bounce back here and it looks as if we might get a bit more today." It's all down to investor confidence. Many are betting central banks will ride to the rescue, and pour more liquidity into markets. They've also wagered that Britain will keep close to Europe, whatever deal is done. (SOUNDBITE) (German) BAADER BANK HEAD OF CAPITAL MARKETS ANALYSIS, ROBERT HALVER, SAYING: "Even though politicians in Brussels are showing a brave face by saying that Britain has to leave, these are only words. Secretly they are looking for solutions whereby Britain can stay in the EU even though they have left the EU -- as crazy as it sounds." Banks too have made a minor recovery. After two days of trading wiped almost 40 percent off Barclays and the Royal Bank of Scotland. A warning for would-be investors though, be weary. (SOUNDBITE) (English) IG, MARKET ANALYST, CHRIS BEAUCHAMP SAYING: "Banking stocks might be cheaper than they were, but I still think there are too many issues surrounding the UK economy for the moment to make them a positive investment case for banks. " The oil market is a different story. Investors have been quick to put their money there. A decline in output has pushed prices up. Good for the global glut, but not those at the gas pump.

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Stocks gain as Brexit nerves settle

Wednesday, June 29, 2016 - 01:50