Brexit worries may return; volume will taper off

LAST week's Hock Lock Siew column "At the heart of Brexit volatility lies complacency'' (BT, June 29) asserted that the apocalyptic scenarios that many experts were painting in the wake of the UK's decision to exit the European Union (EU) amounted to "scare-mongering of the worst kind''. It added that "risks to the financial system may well have been vastly exaggerated by the market and "Remain" campaigners. It argued that this would become evident when the dust settles in a few weeks' time and greater clarity emerges on how the UK is to withdraw from the EU.

So far, in the six trading days following that historic vote, these assertions have proven accurate - stock prices may have undergone a two-day knee-jerk selloff but have since rebounded smartly, albeit aided by half-yearly "portfolio rebalancing''.

Of course it remains to be seen if last week's action turns out to be nothing more than a powerful "dead cat bounce'' since many experts are still struggling to explain the behaviour.