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Sorry for being late.
The main FTSE100 has few companies that have any substantial reliance upon the UK economy.
Holders of US$ have just been able to buy shares in these companies at a substantial discount. Obviously US investors have US$, but so do the smaller Arab oil/gas states, and the biggest bucket of US$ are in the hands of the Chinese. The cynical could see the post-brexit vote slump in the FTSE100 as a subsidy to the Chinese to continue investing in the UK, with George Osborne as the main cheerleader.
The FTSE250, with smaller companies more reliant upon the UK economy has slumped.
mespilus-
Holders of US$ have just been able to buy shares in these companies at
a substantial discount.Technical question - are all FTSE 100 shares bought in sterling? I.e. to buy FTSE 100 shares, does an international investor first need to buy sterling in order to buy the shares, or can they be bought in any currency?
If the former, shouldn't that generate a demand for sterling that drives it against other currencies, or is that demand effect minor in the broader set of currency transactions around brexit?
If the latter, surely loss in value of sterling doesn't imply equivalent loss of value in FTSE 100 companies?
deleted
who can explain that markets are higher than pre-brexit? I thought we'd be in the low 5000's by now?