The pound, which has received much of the impact on the market by the “Brexit” depreciated as much as 1.7% to US $ 1.3055, its lowest level since September 1985. the decline left the British currency 12% below the levels it had before the referendum on June 23 in the UK.
the pound also lost 1.4% against European common currency at 85.48 pence per euro, its lowest level since late 2013. Meanwhile, against the basket of currencies the Bank of England, the currency fell to lows of more than three years.
the decline of the pound accelerated after Aviva Investors, a subsidiary of the Aviva insurance company suspended its fund real estate UK property Trust with immediate effect, becoming the second entity estate market British roots in stop payments due to excessive withdrawals.
on Monday, Standard Life investments, the investment subsidiary of the insurer Standard Life, suspended withdrawals from your fund of 2,900 million pounds, which operates in real estate in the country .
Both events raised the concern that foreign investors may withdraw mass of commercial property in the UK sector, which would generate even more pressure on the pound.
” the last time we saw this kind of turmoil was the financial crisis, “said Mark Priest, an analyst at ETX Capital. “Fears about investing in the industry are spreading today the foreign exchange market, causing a sharp sell the pound after a few days of relative calm.”
The Bank of England expressed concern about a fall demand of investors in British assets and difficulties in the sector of commercial real estate that could complicate the possibility that companies use their property as collateral for credit.
bags regress.
Meanwhile, European stock markets fell weighed down by losses in financial stocks and those related to raw materials, while the roles of the Italian bank Monte dei Paschi touched a record low on worries about the strength of its capital.
the pan-European STOXX 600 index was down 0.7%, which added to losses views on Monday, while the FTSEurofirst 300 index recorded a similar decline.
the European index of commodity STOXX 600, which contains the main mining stocks sector recorded the largest declines, with a drop of a 2%, after copper prices away from a peak in two months on concerns about demand from China.
financial stocks also accumulated losses and the banking sector index lost more than 1%.
the roles of the bank Monte dei Paschi tumbled 7% after Italian newspapers said the government is holding talks with the European Commission on the possibility of injecting liquidity into the bank without imposing losses retail investors.
Among the few winners values, Ryanair Holdings rose 1.7% after reporting an increase in passenger traffic in June.
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