From Tokyo to New York, bags chain collapsed while the pound and the euro is devalued; experts warn of “nefarious risks”
LONDON Analysts had come to events like the fall of Lehman Brothers eight years ago to account for the cimbronazo happened yesterday in the markets stock market worldwide, after learning the result of the referendum that marked the departure of Britain from the European Union (EU).
the place that first felt the impact was not the City of London, center world news noise, but for obvious reasons time he opened the trading day, the Tokyo Stock Exchange. Then cascaded the major Asian markets, European stock markets and Wall Street, plus Latin American stock markets, which were not safe from the backlash.
“A fucking mess,” a trader said a brief summary the London stock Exchange, amid the wild frenzy where values plummeted and pound marking its worst record in 30 years, threatening a new crisis in the battered euro zone.
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“The victory of Brexit is one of the biggest shocks markets of all time, “he said with more elegance but the same concerns other financial operator, Joe Rundle, the firm 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 the bank in 2008 ignited the global financial crisis.
European shares tumbled as sandcastles with losses exceeded 12% in Milan and Madrid. London lost 3.15%, Frankfurt 6.82%, 8.04% Paris, Madrid and Milan 12.35% 12.48%. The collapse of Madrid was the worst in its history.
The Tokyo Nikkei had ended with a loss of 7.92% and Wall Street closed the rosary of tears falling 3.39% of Dow Jones and Nasdaq 4.12%.
we also felt it San Pablo (-2.86%), Mexico (-2.01%) and Merval Buenos Aires (-2.23 .%)
the pound was devalued input with the opening of markets, but also resisted the euro, and shareholders reacted following a formula manually: investing in securities “safe haven” like gold, yen or sovereign bonds. Later there were signs arrivals compensatory German Dax index, which went from a drop of 10% to a close of 6.82% of all forceful ways.
The euro and the pound also lifted his head and they recovered from their lowest values. But the crash in the morning led to a global loss of market capitalization of five billion dollars. In other words, the economic damage equivalent to twice the GDP of Great Britain.
Injection
Banks were the most affected by the general collapse. In London, Lloyds lost 21%, Royal Bank of Scotland Barclays 18.04% and 17.68%. The European Central Bank (ECB) wanted to bring cold water on a market on red alert stating that the banking system of the euro zone “is strong in terms of capital and liquidity” and said willing to “inject additional liquidity in the case of that is needed in euros and foreign currencies “.
traders tried to decipher, in the mist of the erratic numbers, if markets bottomed out or if we expect new falls hereinafter. “We estimate that in the coming days and weeks, as often happens in times of crisis, there is a huge volatility in financial markets,” said Christian Kahler, an analyst at DZ German Bank.
The finance ministers and directors of central banks of the G7 warned of the “disastrous” volatility risks.
“We recognize that excessive volatility and disorderly movements in exchange rates can have adverse effects on economic stability and financial “officials said in conference call. So said they had taken “measures to ensure the necessary liquidity and support market,” and gave the other hand a note of confidence in the economy and the British financial sector “to address the consequences of the referendum.”
the G7 the United States, Germany, Japan, Britain, France, Italy and Canada had warned last month that a departure from the UK EU “represent a new risk to global growth.” And the first signs were oriented in that direction.
The reaction of the leaders in the world
The victory of Brexit in Britain raised concerns in some and was celebrated by others as Donald Trump
Barack Obama
US President
“the essence of the relationship between the two countries remains the cornerstone of US foreign policy. “
Angela Merkel
German Chancellor
“This is a turning point for Europe. The EU is hard to find right answers to what happened answers”
Donald Trump
Republican Candidate
“it’s great what happened. it was a historic vote. people are angry at everyone”
Francois Hollande
President French
Francisco
“This calls for all of us a great responsibility to ensure the good of the people of Britain”
the pound and banks, the most affected
the devaluation hit both the British currency as European, as they fell all over the major stock indexes
Bags
-12%
Pound sterling
The British currency depreciated to its lowest level in 30 years, although hours He then had a slight recovery
-4.5%
Euro
The European currency also lost the favor of financial agents, who preferred to shelter their investments in other assets
-21%
Lloyds
shares of British bank and other financial institutions were among the hardest hit by panic in the markets
US $ 5 billion
losses
This is the amount of damages estimated in the global economy by the movement of markets, equivalent to twice the GDP of Great Britain
-12%
bag Madrid
the Madrid stock exchange recorded the worst drop in its history and was one of the two financial centers hardest hit by run with Milan
Agencies AFP, DPA and Reuters
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