>> World markets have staged their second day in a row of recovery after the shock of Brexit last Thursday. I'm Mike Dolan, Reuters Markets Editor in London. After the drama of last Friday and Monday, we've now had a second day in a row of recovery in the world equity markets.
Obviously, we are in an extremely uncertain period for any investor in trying to navigate the next few days, never mind the next few weeks and months. One thing that has taken markets up off their lows, however, is expectations that there will be some coordinated response from the Royal Central Banks to stabilize at a situation if the markets were to fall any further.
So there is expectations that the Bank of England, the ECB, probably the Bank of Japan will cut interest rates again and possibly even engage in some form of bond buying quantitive easing program. And any thought of a Fed interest rate hike in 2016 has now been taken off the table completely.
So that has helped stabilize things and interestingly the FTSE 100 has now come within 1% of its pre-Brexit levels. Now that's the top blue chips who are focused all around the world. The domestically focused FTSE 250 midcaps is still down about 10% but it gives you a scale of the bounceback that we've seen so far.
Par from policy, central bank policy, we're looking at what the first economic numbers out from the UK might be that would give us a glimpse into the hit to business and household confidences since the vote last Thursday. And we probably won't see any of that until next week, at the earliest.
So, in the meantime, what one person described this morning as extreme mood swings in the market are probably likely, and those volatility levels that we've seen are probably justified.