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World markets in shock after Brexit
June 24, 2016, 9:15 am

As many had predicted, UK Prime Minister David Cameron announced his plan to resign soon after Britain voted out of the EU [Xinhua]

As many had predicted, UK Prime Minister David Cameron announced his plan to resign soon after Britain voted out of the EU [Xinhua]


Britain’s stunning vote to leave the EU in a referendum sent world markets reeling on Friday as they dealt with the exit of a major economic power from the European market and the bid to resign by UK Prime Minister David Cameron.

In London, the FTSE 100 opened 7 per cent lower before recovering somewhat at press time to curb some of its losses at 6,060.33.

In Paris, the CAC 40 dropped more than 8.2 per cent to 4,098 before recovering to 4,134.85.

In Germany, the DAX fell 5.91 per cent to 9,650.

Immediately following the announcement of the results with 51.8 per cent opting to leave the EU and only 48.2 per cent choosing to remain, Japan’s Nikkei index fell a whopping 7.6 per cent – a blow that comes at a terrible price wiping off millions off the exchange following weeks of tumultuous Japanese economic policy.

The Japanese yen also strengthened against the dollar, a prospect that does not bode well for the country’s business export environment.

South Korea’s KOSPI fell 3.09 per cent to 1,925.24 while Australia which had been fearing a Brexit for much of last week saw its ASX 200 close 3.17 per cent down at 5,113.

In China, the benchmark Shanghai Composite closed down 1.30 per cent while Hong Kong’s Hang Seng Index fell 2.92 per cent to 20,259.13.

India’s Sensex also fell 2.70 per cent to 26, 274.

The hardest hit commodity of course was the Sterling pound if not only fell to the lowest level since 1985 but also dropped a whopping $0.18 against the dollar in one swift swoop trading in now at $1 35.

The EU fell $0.03 against the dollar to settle at just around 1.10 as global investors wondering about the future of the economic Union. It settled at $1.11 at press time.

The BRICS Post with inputs from Agencies

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