FTSE flips to gains, rest of Europe dragged down by Brexit risks

The European equity markets had a negative start this Wednesday, extending the downbeat sentiment from the previous session as investors continue to weigh the impact of a Brexit vote on the UK’s as well as global economic outlook.

However, the London stocks quickly reversed early losses and turned into the positive territory as markets continue to cheer BOE’s rate cut calls, as underscored by Tuesday’s BOE Financial Stability Report (FSR).

Germany's DAX 30 index drops -0.10% to 9,523, while the UK's FTSE 100 index trades +0.41% higher at 6,571. Among other indices, the French CAC 40 index drops -0.25% to 4,153, while the Euro Stoxx 50 index slips -0.20% to 2,807.

The immediate focus now remains on the ECB President Mario Draghi’s speech due shortly, which will provide fresh insights on the 19-nation bloc’s monetary policy outlook, especially post-Brexit.