Post-Brexit rally runs out of steam

THE global post-"Brexit" rally appears to be fast running out of puff - on Tuesday, the Dow Jones Industrial Average which set several all-time highs last month, fell for the seventh consecutive session, no doubt a factor behind the Straits Times Index's (STI) 29.09-point loss on Wednesday at 2,827.58.

From June 27, two trading days after Britain voted to leave the European Union, the STI had jumped from 2,729 to 2,945 on July 20, a gain of 216 points or almost 8 per cent in less than a month.

That rally has widely been attributed to faith in the Bank of England and Bank of Japan providing liquidity support for their economies via their markets, and on the US Federal Reserve delaying raising US interest rates.