FTSE 100 gains 11.6% at Brexit “black Friday” market close

I had to smirk when seeing all the headlines of the financial press. MSN informs us the bank of England opens a war chest to try and “save the economy”.

Reuters calls the British EU exit an “explosive shock”. Moodys provide a credit rating downgrade.

The real news is that although the currency suffered, the British EU exit announcement had a relatively low impact on the UK sharemarket. The FTSE 100 closed Friday at 6138.69, which is 639.18 points higher than the year’s low point in February (5499.51).

Some large companies gained. Vodafone (VOD) opened at 203.25 and closed at 219.30. “Safe haven” Unilever (ULVR) went from an open of 3164.50 to a close of 3265.50.

Even Lloyds banking group (LLOY) which dived 21% to 57p, really only took it back to 2013 levels.

Unfortunately, a headline depicting a moderate decline on the day in an index that is otherwise 11.6% higher since the year’s low point, is not going to be very clickworthy, or sell to the international press.

It is unfortunate there are few well-measured, balanced headlines, as we see millions signing an online petition to have another referendum. No doubt fears have been fuelled by alarmist, doom and gloom headlines.

What next for the FTSE?

Nobody knows. Now that the path is clear, we will see announcements over the coming months about various trade deals that will be coming in to replace default EU ones. As each announcement becomes public, it seems a likely outcome that we will see the FTSE twitch in a positive manner.

Memo to alarmist press: Yes, Britain has voted to leave the EU. Get over it, and let’s start looking forward to what comes next.