Brexit: the first day

As a remarkable session for politics, economics and finance begins to wind down, the FTSE 100 has lost 140 points, although it is well off the lows of the day.

- Brexit vote is done, but the debate goes on
- A rare chance to bargain hunt, or a sign of worse to come?
- Fed policy expectations revised yet again

Markets are discovering how to live in a post-Brexit world, a state of affairs that seemed impossible just 24 hours ago. It is, as a famous statesman once observed, 'too soon to tell', but what is certain is that we have not heard the end of discussions on Britain's future. In fact, these have barely begun, both internally and externally. The ripples of the UK's decision today will be felt across the globe, and for a long time to come. In purely market terms, the FTSE 100 has staged a remarkable recovery; from an open of cataclysmic proportions, the index has rallied by over 300 points. Of course the damage to individual shares has been immense, but even in some of the most heavily
 beaten-down names a recovery has taken place. Investors are, in theory, supposed to relish the chance to buy up their favourite shares at knock-down prices, and they got such a chance today. Only time will tell if this has been a spectacular buying opportunity, or the first act in a new and volatile bear market.

Other markets have been hit hard too, with the eurozone's major indices taking it particularly badly. If it comes down to it, many of the UK's biggest firms will look compelling if sterling remains weak, while a falling dollar, thanks to yet another dramatic reassessment of the outlook for Fed policy, could boost commodity prices and provide another tailwind for UK stocks. However, we have likely not seen the end of the rush to safe havens, as the UK and its erstwhile EU partners begin their prep for a long period of negotiation.