Which European stock index is happier after Brexit?

FTSE is outperforming DAX and CAC.

FTSE, DAX and CAC overlay from 23 June 2016 - present

FTSE, DAX and CAC overlay from 23 June 2016 – present

From another angle, FTSE has recovered/retraced nearly 80% of Brexit losses but less than 40% from DAX. This is a three day performance that may or may not be here to stay but it is immediately clear that FTSE is relatively stronger, stock market participants are approaching the German index with more pessimism.

FTSE, DAX retracement post-Brexit

FTSE, DAX retracement post-Brexit

Quiz

FTSE shows it’s strength after Brexit compared to DAX and CAC. Which one of the following is true? (Choose A/B)

A. Investors are displaying solidarity with the British.
B. Investors are worried about Deutsche Bank’s derivatives exposure.

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005. Soh Tiong Hum is a member and regular speaker at Technical Analysts Society Singapore events and has a bi-monthly lunch time event at IG Singapore on forex and stock markets. He is an avid blogger on technical analysis topics; his Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX. Come find Tiong Hum on Google+
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