Agencies / Paris and London
The victory of Brexit sank yesterday markets, particularly banking stocks, causing a stampede investors to safe havens.
The pound fell as its lowest in 31 years against the dollar, a devaluation of 12% (to $ 1.3229), but then regained ground to $ 1,629, compared with 1, 4974 yesterday. The euro was trading at $ 1.11117 his side, against the value of 1.1422 at Thursday’s close. During the night, the single currency fell as low as 1.0913 dollars.
European shares slumped with losses exceeded 12% in Milan and Madrid. The London Footsie-100 index lost 3.15%, the Dax 30 in Frankfurt 6.82%, the CAC 40 in Paris 8.04%, the Ibex 35 12,35% and the FTSE-Mib in Milan 12.48 %. The collapse of Madrid’s Plaza was the worst in its history.
The black Friday began in Asia, where the Nikkei index of the Tokyo Stock Exchange lost 7.92%, and lasted in America. On Wall Street, stock market activity ended with a sharp fall to the amazement by the British decision, but without panicking: the Dow Jones lost 3.39%; the Nasdaq, 4.12 %% and the extended index S & P 500 fell 3.60%.
Meanwhile, the Brexit hit all Latin American markets: Sao Paulo -2.82% -2.23% Buenos Aires, Mexico -2.01% and -1.42% Santiago. The currencies also depreciated against the dollar: the Mexican peso fell 3.12%, the Argentine -3.84% -1.55% Chilean, Colombian -2.58%, while the Brazilian real lost 1.04 %.
“The British voted (by Brexit) despite warnings of the vast majority of economic experts. No wonder then that this morning the referendum results cause waves in global financial markets” said Daniel Vernazza, an economist at Unicredit Research.
the banks were the most affected. in London, Lloyds banking Group lost 21%, Royal Bank of Scotland (RBS) and Barclays 18.04% 17.68 %.
in Spain, Banco Santander, with a strong presence in the UK, lost 19.89%, 20.78% fell Bankia and Banco Sabadell fell 19.29%. “the victory of Brexit is one of the biggest shocks of the markets of all time, “said Joe Rundle, head of trading at ETX Capital. “It is difficult to measure the extent of damage to the assets, but at least can become the worst since Lehman Brothers,” he added, referring to the collapse of Wall Street bank in 2008 precipitated the global financial crisis.
the victory of Brexit exacerbates uncertainty about the global economy, which has not yet recovered from all of the 2008 crisis.
“We are entering a completely unknown territory, where the only certainty is uncertainty, “said Jean-Michel Six, chief European economist at rating agency Global rating SP.
England and Wales, with the exception of London, they bowed in favor of leaving the European Union (EU), while Scotland and Northern Ireland clearly chose to stay.
Following the outcome is raised voices to call a new referendum on Scottish independence and integration of Ulster in Ireland. Another question is what will happen to Gibraltar, where 96% of the population voted in favor of remaining in the EU.
In this sense, the Scottish first minister, Nicola Sturgeon nationalist, said it could push for a second referendum on Scottish independence. Count “makes clear that the Scots see their future within the EU,” said the leader of the Scottish Nationalist Party (SNP).
Meanwhile, the honorary president of the Northern Irish republican party Sinn Fein, Declan Kearney said that the victory of brexit throughout the UK must promote the call for a referendum on Irish unity.
“the British government has lost any mandate had to represent the economic interests or Northern Irish politicians, “he said the leader of the formation, former political wing of the Irish Republican Army (IRA) that” dreams of one country without borders with Eire “said Sky News.
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