The decline comes as investors worry about weakness in the UK economy and the prospect of interest rate cuts to boost demand. With higher prices on the way after the Brexit vote, inflation could breach its 2% target during 2017. However, the mid-cap FTSE 250, which is more exposed to the UK economy than the 100 index, has yet to reach the level it was sitting at before the referendum result, despite recovering more than 13% from its lows. However, the leading UK index is chock-full of companies with international operations, which are less exposed to any slump in the UK economy, and which earn in dollars, thus gaining from the new lower exchange rate. Stock marketsMarkets were caught by surprise by the Leave result and a record $2tn was wiped off the value of global shares.

Source: The Guardian July 23, 2016 15:00 UTC