Morning Briefing: Britain leaving EU, markets fall sharply

Morning Briefing: Britain leaving EU, markets fall sharply

Morning Briefing: Britain leaving EU, markets fall sharply Britain leaving EU, markets fall sharply
The UK has voted to leave the European Union, triggering a sharp drop in equities and oil prices.

With 51.9 per cent of voters opting for Brexit, not what the markets were expecting, equities have plunged along the pound.

Oil prices are down around 4 per cent while gold has moved higher by around the same margin.

Prime Minister David Cameron, who was urging the country to remain, announced his resignation shortly after the result was known. He will leave in the fall but the process of leaving the EU will not be triggered until a new leader is in position. The UK will then have two years to leave the bloc.

Former BoC governor Mark Carney, spoke as governor of the Bank of England, in a bid to reassure markets that the UK’s financial stability is strong and that the central bank has the instruments it needs to mitigate turbulence in the markets and the currency.

Asian equities closed lower with the Nikkei plummeting almost 8 per cent.

European markets are down around 5 per cent, having pared earlier losses of up to 10 per cent. Volatility will continue for some time, analysts said.

Wall Street and Toronto are expected to follow the trend with US equities particularly at risk of a slump.
 
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North America (previous session)
US Dow Jones 18,011.07 (+1.79 per cent) +1.72 per cent +0.25 per cent
TSX Composite 14,131.38 (+0.91 per cent) +1.28 per cent -5.46 per cent
 
Europe (at 4.30am ET)
UK FTSE (previous) 6,034.90 (-4.78 per cent) -2.96 per cent -11.83 per cent
German DAX 9,611.59 (-6.29 per cent) -4.43 per cent -16.21 per cent
 
Asia (at close)
China CSI 300 3,077.16 (-1.29 per cent) +0.44 per cent -36.95 per cent
Japan Nikkei 14,952.02 (-7.92 per cent) -9.37 per cent -28.35 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.69
(+4.36 per cent)
47.98
(+4.25 per cent)
1315.10
(-4.12 per cent)
U$0.7683
 
Aus. Dollar
U$0.7398