How Markets Reacted to UK Leaving EU

There were a few bright spots for investors says Morningstar’s Simon Molica with the FTSE regaining much of the days earlier losses

Simon Molica 24 June, 2016 | 5:34PM
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Simon Molica: We now have the result of the EU referendum and this has certainly created some challenges and we had a busy day. We've spoken to lots of asset managers. And I guess one takeaway is that the markets have remained functional. So, from what they have said, they have experienced high volumes in the market. So, as yet, today, there's been no liquidity crisis.

I guess if there were other bright spots I had to point towards on quite a gray day that would be potentially the FTSE 100 Index, which although suffered losses initially, it has recovered some ground. And I guess the larger U.K. companies do benefit from some weaker sterling because of their exporting orientation.

I guess the other thing I'd point to really is just if you have been globally invested then actually the weaker currency again mitigates some of your losses from markets that have fallen around the globe on what has been quite a bleak day.

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Simon Molica

Simon Molica  is a portfolio manager for Morningstar Investment Management