07 July 2016 UK
Morning Markets Rebound - Builders Up
As ever the markets fox the pundits and reverse yesterdays losses

(Picture: Crisis what crisis? - LSE chart this morning)
If you want to see evidence of parallel universes look no further than the stock exchange.

Yesterday was a bad day for most, the footsie took a turn against builders and banks, the news was awful, the pound slid further.

This morning in early trading, it was like a party had started secretly before the brokers went to work.

Barratt, Taylor Wimpey, Persimmons, all up over 5% on yesterday's close. As for the pound?

Well, before the markets got down to it, major figures had been warning it would reach dollar parity and that structurally it was a dead duck. Not only that but economist George Magnus said that a weak pound wasn't good news at all for exporters, rather it was simply another sign the economy was shrinking and that few benefits would accrue.

Meanwhile Mohamed El-Erian, chief economic adviser to investment firm Allianz, warned too that the pound was on its way down and that the UK was simply lacking governance.

All of which normally would send the markets into free-fall, but not this morning. Perhaps the brokers were all at a party and no-one reads the Guardian.

So far the pound has held up, if you can call being below $1.30 'holding up' at $1.2986

Shares across a broad range show positively and the FTSE is up 1.7% on yesterdays close.

Whether or not this is simply another round of opportunism on the back of a bad day is hard to tell, but certainly there seems no good reason for the optimism.

Stock markets in Europe are also in positive territory compared to yesterday, so as ever, the markets confound and another universe opens up.