FTSE Rebounds After Brexit Vote Slump

LONDON, June 28 (Reuters) – British shares rebounded on Tuesday led by banks and travel stocks which were the hardest hit in the two-day post-Brexit slump.

The FTSE 100 rose 2.3 percent to 6,117.22 by 0711 GMT, with every stock in positive territory in early trading.

The index fell more than 5 percent in the two sessions after Britain voted to leave the EU last week, wiping off nearly a 100 billion pounds ($132.87 billion) off the value of the UK’s blue-chip companies.

In the aftermath of the vote, sterling has fallen sharply and expectations are rising of a recession.

Britain suffered further blows to its economic standing on Monday as two top ratings agencies downgraded its sovereign credit score.

Bank stocks, which had fallen 16.4 percent in two days, rallied 3.1 percent on Tuesday morning. Travel and leisure stocks rose 2.4 percent after a 12 percent slump in the previous two days.

The mid-cap FTSE 250 rose 3 percent, buoyed by a rise in housebuilder Redrow.

Redrow was down 30 percent since the vote, on concerns about the impact that leaving the EU would have on the housing market.

Shares in food retailer Ocado were up 5.5 percent after it reported a profit rise.

(Reporting by Alistair Smout; Editing by Vikram Subhedar)


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