Monday, 27th June: They say time is a healer. Investors are going to need more than a weekend as markets across Europe and the US (at the time of writing) continued to suffer following the result of the referendum on Friday morning. In the UK the FTSE 100 opened relatively calmly, dropping 1.0% in the first half hour, however, during trading, the index dropped more than 2% before the US open. Banks and housebuilders were once again the victims of the selloff – Barratts and Persimmon falling more than 20%.  The FTSE 250, which is made up of more domestically based stocks, has fallen more so – more than 6% lower mid afternoon, again led lower by the same sectors: Bellway and Virgin Money both gave way to more than 20% losses.

Of course with a risk sell off investors rush to safe havens, as Gold rose higher for the third consecutive day. Randgold Resources led the FTSE 100, gaining more than 10% in mid-afternoon (gaining more so post US open), closing trading +9.02%. Their peers Fresnillo took silver medal, ending the day +7.00%.

Forex markets continued to suffer as sterling fell more against the euro, the Japanese yen and the dollar. The pound fell to below $1.32, more than 3% lower whilst it fell to below €1.20. The depreciation of the pound will ultimately make exports cheaper and provide a boost to the economy but the sharp fall in the pound is likely to push inflation higher (put upward pressure on prices). The Bank of England spoke on Friday following the referendum result, with speculation that interest rates could be cut to cushion the UK economy from turmoil ahead.

All the while, easyJet released an update to their third quarter trading. The holiday and airline industry has been hit by many factors out of their control: geo-political events; strike action by French Air Traffic Controllers; severe weather and; runway and congestion issues at Gatwick airport. As a result there have been 700 cancellations in June alone (to date), with strikes and weather conditions accounting for most of these. As a result, a drop in consumer demand has led to lower yields and have impacted on third quarter Profit before Tax. Following the result of the referendum the group anticipate additional economic and consumer uncertainty which will impact summer trading. The group trailed the FTSE 100 for the duration of Monday trading, ending the day lower by 22.32%.

All in all it was a sea of red across Europe at the close: the CAC 40 (-3.07%), the DAX (-3.02%)and the FTSE 100 (-2.55%) and 250 (-6.96%) all ended lower. The S&P 500 and Dow Jones are down by -1.64% and -1.32% respectively. Brent oil is lower by 2.79% (at the time of writing), remaining under $50 bbl.