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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks reel after UK's shock Brexit vote Shares reeled at the start of trading, as markets reacted to the 'shock' decision by Britons to withdraw from the European Union, with traders anxious to be better able to gauge what the extent of the fall-out for financial markets and the economy might be.
After 43 years, and in a historic referendum, the UK voted to leave the EU.
As was expected, the Bank of England issued a statement before the start of trading in London saying that it was monitoring developments closely.
In another shock development, the Prime Minister announced he would step down.
Among other things, that appeared to imply that Article 50 of the Lisbon Treaty - starting the two-year countdown to formally finalise the UK's exit - would not be triggered on Friday.
Both Michael Gove and Boris Johnson had asked Cameron not to rush into a decision to trigger Article 50.
As of 0827 BST, the Footsie was 437.16 points or 6.90% lower at 5,900.94, 'outperforming' European stocks by a slight margin.
Holger Schmieding at Berenberg said: "Expect central banks to offer all the liquidity that may be needed to prevent any shortage of liquidity in the financial system, with swap arrangements among each other so that the liquidity can be offered in the currency required. That the European Central Bank is buying sovereign and corporate bonds worth €80bn per month anyway limits the risk of a dramatic blowout in yield spreads as markets ratchet into risk-off mode.
"What we had seen as the most significant risk to the political and economic outlook for the UK and, to a lesser extent, for the European Union as a whole, seems to be materialising."
Over on the Continent, shares were getting walloped, with Germany's Dax down by 8.25% or 809.39 points to 9,447.64 and the Cac-40 off by 9.73% or 434.37 points at 4,034.98.
In parallel, cable was lower by 7.88% at 1.3704 while the US dollar/yen cross was off by 3.31% to 102.65.
Other asset classes were seeing similar moves, with front month Brent crude futures down by 4.5% to $48.74 per barrel on the NYMEX.
Mike van Dulken, head of research at Accendo Markets, said: "Following a one-week rally on hopes that the campaign tide had turned back towards Remain, we expect the hardest hit stocks to be financials (banks, insurance) followed by housebuilders, with commodities related-names (miners, oil) following close behind."
No FTSE 350 companies released any statements at 0700 BST via the regulatory news service (RNS), though the competition regulator reported on the conclusion of its energy market investigation. The Competition and Markets Authority (CMA) set out what it said were a more than 30 measures "to modernise the market for the benefit of customers" after it found that customers have been paying £1.4bn a year more than they would in a fully competitive market. |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks and sterling tank, gilts and gold surge on Brexit European stocks tumbled in early trade, the pound slid against the dollar and oil tanked, while gilts and gold surged as the UK voted to leave the European Union.
Results of the referendum showed a Leave win at 52%, with Remain at 48%. London, Northern Ireland and Scotland backed Remain, while the rest of England and Wales opted to leave.
Markets in Asia crashed on Friday; the Nikkei lost over 8% and the Hang Seng fell more than 4%, while the yen raced past 100 per US dollar for the first time since November 2013 on its safe-haven appeal.
At 0830 BST, the benchmark Stoxx Europe 600 index was down 8.3%, Germany's DAX was off 7.9% and France's CAC 40 was 8.8% lower. The FTSE 100 was down 6.2% as it emerged that David Cameron had resigned as prime minister.
He said the UK needed "fresh leadership" to "steer the country" out of the EU.
"There is no need to have a precise timetable today, but in my view we should have a new PM in place in time for the Conservative Party conference in October," Cameron said.
"A negotiation with the EU will need to begin under a new PM, and I think it's right that this new PM takes the decision about when to invoke Article 50."
Dennis de Jong, managing director of UFX.com, said: "This is simply unprecedented, the pound has fallen off a cliff and the FTSE is now following suit.
"Britain's EU referendum has been a cloud hanging over the global economy for the past few months and that cloud has got very dark this morning.
"The markets despise uncertainty, yet that is exactly what they're faced with this morning. The shockwaves are likely to reverberate for some time and the warning lights are flashing brighter now than ever."
Unsurprisingly, bank took an absolute battering, with the Stoxx 600 sub-index for the sector down nearly 7%.
In London, Lloyds, Royal Bank of Scotland and Barclays were all down at least 30%. Housebuilders also took a beating, with Taylor Wimpey, Barratt Developments, Berkeley Group and Travis Perkins also suffering losses of 30% or more.
Meanwhile, the pound was trading around $1.3632, having crashed to its lowest level against the dollar since 1985 earlier.
In commodities, oil prices skidded while gold shone as investors looked for safe places to park their cash. West Texas Intermediate was down 5.1% to $47.56 a barrel and Brent crude was 5% weaker at $48.33, and gold surged over 5%.
At the same time, UK gilt yields set new records, with the yield on the benchmark 10-year government bonds down 35 basis points to 1.003%.
Morgan Stanley said on Friday that it expects Brexit to lead to profound and protracted political and economic uncertainty. This in turn will lead to a weaker pound, pushing inflation up and denting growth, the bank said.
"First it will hit sterling, as uncertainty reduces non-residents' appetite for UK assets against the background of the UK's record current account deficit.
"Second, it will hit growth, as firms hold back on investment, and households increase precautionary savings. Longer term, we expect a less open and more volatile economy, with reduced inflows of capital and labour, and a lower rate of potential growth."
Exane BNP Paribas said European equities could fall 10% to 15% in the next few days, adding that recession by the end of this year was its base case.
The Bank of England said on Friday that it was "monitoring developments closely" and had undertaken "extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks". |
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| | US Market Report | | US close: Stocks end higher as Britons cast their votes Markets in the US closed higher on Thursday, with sterling reaching close to year-to-date highs against the greenback as sentiment swayed towards expectations that the UK will vote to remain in the European Union.
The Dow Jones Industrial Average finished up 1.29% at 18,011.07, the S&P 500 added 1.34% to 2,113.32 and the Nasdaq ended the day up 1.59% at 4,910.04.
"I think the market's already voted. It looks like they're looking for the stay vote to prevail," Darhan Capital CEO Adam Sarhan said.
"This could be a classic case of 'buy the rumor, sell the fact.'"
Financials - a sector highly sensitive to the results of the referendum - gained 2.1% to lead all of the S&P 500.
Goldman Sachs contributed the biggest gains to the Dow, rising 3%.
The US Federal Reserve was due to release the first annual bank stress test results after the close.
Sterling traded near $1.49 during the session - its highest levels since December.
It was last 1.19% stronger at $1.4882.
Weekly jobless claims figures fell to 259,000 in a release during the day, which was near the 43-year low touched in March.
The flash Markit manufacturing PMI for June rose to 51.4, from 50.7 last month.
New home sales declined however, by 6% in May, to a seasonally-adjusted annual rate of 551,000.
Crude oil prices settled up by the closing bell in New York, with West Texas Intermediate last ahead 1.96% at $50.12 and Brent crude up 2.1% at $50.94 per barrel.
On the corporate front, app development tool firm Twilio opened at $23.99 per share after an IPO at $15 per share, well above the anticipated $12-$13 range for the stock.
Department store Macy's announced during the session that CEO Terry Lundgren will step down from his post next year.
S&P 500 - Risers
Micron Technology Inc. (MU) $14.06 +10.53%
Transocean Ltd. (RIG) $12.03 +5.53%
United States Steel Corp. (X) $18.04 +5.37%
Western Digital Corp. (WDC) $50.81 +5.09%
Tenet Healthcare Corp. (THC) $29.38 +4.93%
Williams Companies Inc. (WMB) $21.78 +4.91%
Leucadia National Corp. (LUK) $17.98 +4.84%
Charles Schwab Corp. (SCHW) $29.69 +4.76%
Qorvo, Inc. (QRVO) $58.28 +4.74%
Mosaic Company (MOS) $28.00 +4.71%
S&P 500 - Fallers
Red Hat Inc. (RHT) $78.39 -1.71%
Southwest Airlines Co. (LUV) $39.59 -1.66%
Viacom Inc. Class B (VIAB) $43.47 -1.27%
Newmont Mining Corp. (NEM) $35.39 -0.92%
Nike Inc. (NKE) $54.12 -0.82%
Essex Prty Trust Inc. (ESS) $218.45 -0.80%
Costco Wholesale Corp. (COST) $157.03 -0.69%
Ross Stores Inc. (ROST) $54.06 -0.68%
Delta Airlines Inc. (DAL) $38.31 -0.62%
Extra Space Storage (EXR) $87.04 -0.49%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $152.66 +3.05%
Caterpillar Inc. (CAT) $78.22 +2.34%
Visa Inc. (V) $78.23 +2.22%
Intel Corp. (INTC) $32.99 +2.17%
JP Morgan Chase & Co. (JPM) $64.05 +2.14%
Chevron Corp. (CVX) $104.44 +2.10%
American Express Co. (AXP) $63.25 +2.10%
Travelers Company Inc. (TRV) $113.85 +1.81%
Microsoft Corp. (MSFT) $51.90 +1.78%
Cisco Systems Inc. (CSCO) $29.22 +1.74%
Dow Jones I.A - Fallers
Nike Inc. (NKE) $54.12 -0.82%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $14.06 +10.53%
Western Digital Corp. (WDC) $50.81 +5.09%
Akamai Technologies Inc. (AKAM) $57.17 +4.51%
Sba Communications Corp. (SBAC) $107.26 +4.24%
Illumina Inc. (ILMN) $146.59 +4.05%
Incyte Corp. (INCY) $81.66 +4.03%
Vertex Pharmaceuticals Inc. (VRTX) $88.20 +3.50%
NetApp Inc. (NTAP) $26.02 +3.29%
Liberty Global plc Series A (LBTYA) $33.14 +2.98%
Liberty Global plc Series C (LBTYK) $32.31 +2.96%
Nasdaq 100 - Fallers
Viacom Inc. Class B (VIAB) $43.47 -1.27%
Costco Wholesale Corp. (COST) $157.03 -0.69%
Ross Stores Inc. (ROST) $54.06 -0.68%
Tesla Motors Inc (TSLA) $196.40 -0.13% |
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| | Newspaper Round Up | | Friday newspaper round-up: Brexit, Brexit, Brexit As Europe wakes up to the news that Britain has voted to leave the EU, reactions from the UK's leading business groups have started to pour in. The Institute of Directors admits that the referendum result may not have been the one most of its members wanted but now that the UK has decided, it is "imperative" that political leaders manage the transition out of Europe "as smoothly as possible". - Financial Times
The UK's central bank has said it is working with other authorities to do everything necessary to ensure financial stability. In a statement the Bank said: "The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks. The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability." - Financial Times
The price of gold surged in the early hours of the morning as it became clearer that the British public had voted to leave the European Union . The precious metal rallied as much as 8.1pc to nearly $1,360 an ounce, its highest since March 2014, after dipping as low as $1,255 an ounce after voting closed last night. - Telegraph
11 September 2001. 15 September 2008. To that list of huge stock market plunges, it looks as if historians will soon add 24 June 2016: the day the markets went into freefall when Britain voted to leave the European Union. The City wasn't even waiting for the final result to be announced. It was selling sterling long before the sun came up, driving the pound down to levels against the dollar not seen for 30 years. - Guardian
David Cameron and Jeremy Corbyn were facing an uncertain future today after the public defied both leaders and voted for Brexit. The prime minister was holed up in Downing Street with key aides through the night. An extensive operation over recent days to shore up Mr Cameron's future petered out in the early hours of this morning. - The Times | | |
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