British stocks and currency continue to recover from the shake-out of the European Union

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PA

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British stocks were damaged after the announcement of the exit vote from the European Union

British stocks and currency began to recover some of the value they had lost after the British voted to leave the European Union.

After the FTSE 100 index increased by 2.6 percent on Tuesday, it recorded another increase of 1.8 percent on Wednesday morning.

As for the FTSE 250 index, which includes companies whose activities are concentrated in Britain, it increased by 1.1 percent, and it increased by 3.6 percent on Tuesday.

The exchange rate of the British pound rose by 0.4 percent compared to the dollar to $ 1,339, but the pound is still below the level it was before the referendum.

The pound sterling was equal to 1.5 dollars on Thursday before the referendum result was announced, then its value against the dollar fell to the lowest level in 31 years.

“The situation will remain as it is, in the short term, unless Article 50 of the Lisbon Agreement is implemented,” said Michael Hewson, chief local officer at CTC Markets.

But other analysts caution that the relative stability, which markets have seen in recent days, is unlikely to continue.

“Stock exchanges and the pound are continuing to recover, but the reality of leaving the European Union will affect sooner or later,” says Joe Randell, trade officer for ETX Capital.

“What we see in Vitesse is the hope that Britain will remain in the single market, and this is just hope.”

Financial institutions that were damaged after the referendum also started to recover, as the insurance company Prudential reported an increase of 5.9 percent, and Barclay Bank increased by 3.6 percent.

The rise was despite the credit rating agency Moody’s announcing that Britain’s financial sector will be downgraded to “negative” from “stable” last Tuesday.

Moody’s also downgraded some British banks and insurance companies.

The price of gold increased after Tuesday’s drop, as it increased by 0.6 percent.

Gold is considered a safe asset in the circumstances of the turmoil, and its price recorded the largest increase in two years after the referendum.