The post-Brexit recovery across European markets has stalled with major share indexes mixed and safe-haven demand for precious metals helping the price of silver surge to a near-two year high. But, as Sonia Legg reports, trading volumes were light becasue of the July 4 public holiday in the United States.
Trading volumes were light thanks to the Independence Day holiday in the U.S. But the post-Brexit recovery has stalled. European shares were slightly down - snapping a four-day winning streak. (SOUNDBITE) (German) BAADER BANK HEAD OF CAPITAL MARKETS ANALYSIS, ROBERT HALVER, SAYING: "This week is going to be calmer, the risks of a Brexit have been thought through - if it actually happens markets will fall, but not dramatically - the central banks will make sure of that." Italy's banks - saddled with bad loans - took a hit as talks to stabilise them with public money continued. But gains in the mining sector helped limit losses on the FTSE. (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "I think one of the reasons why the FTSE 100 has done so well since the Brexit vote aftermath is because of its comparative dividend yield to 4.2 percent - in a negative or low interest rate world 4.2 percent yield isn't too bad." Asian shares had risen on expectations of economic stimulus from China. And the Australian dollar recovered from a wobbly start caused by political uncertainty following a weekend election. Sterling came under pressure again though - it fell after a PMI survey showed Britain's construction sector suffered its worst contraction in seven years ahead of the Brexit vote. But some are still convinced it may not happen. (SOUNDBITE) (German) BAADER BANK HEAD OF CAPITAL MARKETS ANALYSIS, ROBERT HALVER, SAYING: "The markets assume, and I do as well, that Brexit is not going to happen, instead they'll be a 'Re-Brexit' - another referendum in the autumn. And if the first one was binding, the second one should be as well." Wishful thinking maybe - markets did after all get the first vote very wrong And demand for safe-havens was up - the price of silver hitting a near-two year high.