Week ahead: Markets set to feel the Brexit burn as uncertainty reigns

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The Brexit vote has sparked economic and political turmoil (Source: Getty)

The spotlight will this week continue to be firmly on the implications of the UK’s shock decision to quit the European Union.

Markets are expected to be on post-Brexit watch, with twitchy traders nervous over potential volatility. After the vote on Thursday the FTSE 100 dived more than eight per cent at the open on Friday morning, though clawed back ground to finish 3.2 per cent lower at 6,138.69 points. Trading volumes were nearly five times normal.

The political fallout from the vote is also going to be closely monitored with both the Tories and Labour facing leadership chaos.

Manufacturing data out of the UK and US will be watched for clues on the state of the economies ahead of the referendum and how it could influence interest rate decisions on both sides of the pond.

Corporate data is still quite thin on the ground but watch out for half -year results from online grocer Ocado tomorrow and full-year results from bus and rail company Stagecoach on Wednesday.