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Believe bonds not stocks on Brexit damage

Swaha Pattanaik 

Swaha Pattanaik UK markets, like the Roman god Janus, have two faces. A week on from Britain's vote to leave the European Union (EU), equity markets present a view that things won't be too much worse than the past. Falling government bond yields point to a bleaker future. The pessimistic thesis has more going for it. The smart rebound in the blue-chip FTSE 100 Index, which has now surpassed its June 23 referendum day close, has a lot to do with sterling's slump, since about three-quarters of constituent companies' revenue is earned overseas. Still, even the FTSE 250 Index of mid-caps, which ...

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First Published: Thu, June 30 2016. 21:32 IST