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Markets Recover Losses As Brexit Fears Fade
By: Joey Ho
Articles (30) Profile

Stock indices across the globe, which fell sharply following last week’s United Kingdom European Union membership referendum, have since recovered losses as Brexit fears fade. Despite 52 percent voting to leave the European Union (EU), there are still several scenarios that could result in the vote being overturned.

United States Secretary of State, John Kerry, raised doubts about whether the Brexit will happen, also claiming that there were a number of ways in which the vote could be “walked back”.

US stocks staged a strong recovery during the week, ending higher on Thursday, as Wall Street investors play down the economic effects to the United States from the British exit. The broad-based Standard & Poor’s 500, which fell below the 2,000 mark for the first time in over three months, added over three percent to end at 2,098.86. The Dow Jones Industrial Average came close to falling below the 17,000 mark on Monday before a strongly rebounding up to 17,929.99.

Asian markets mirrored Wall Street, erasing post-Brexit losses to end higher on Friday. On Tuesday, the Straits Times Index plunged to its lowest point since March before adding 142.89 points or 5.3 percent to end the week at 2,846.37 as most constituents other than City Developments clawed back losses.

City Developments, which has significant exposure to properties in the United Kingdom, saw its shares dip below $8 on Tuesday failing to recover to pre-Brexit levels. The property giant’s Chairman, Kwek Leng Beng, remained unfazed by the depreciation of the British pound, adding that he is poised for a buying spree in the United Kingdom and Europe.

Equipped with a bachelor in banking and finance, Joey covers the finance, technology and healthcare industry in Singapore.

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