The FTSE 100 has plummeted in early morning trading after the UK voted to leave the European Union in yesterday’s referendum.
Sterling fell sharply on international currency markets – and now stands at its lowest level against the dollar for over 30 years. Early this morning it was trading at $1.32 (£0.95) – though had recovered slightly to $1.37 (£0.99) just before 9am. The euro has also fallen against the dollar.
London stock markets suffered similar shock. In early trading 8.7% was wiped off the value of the FTSE100. Worst hit were the banks and housebuilders – with some stocks falling by 35%.
But ordinary investors are urged to stay calm, consider their investment portfolios carefully and avoid any knee-jerk reaction to the market frenzy.
Laith Khalaf of Hargreaves Lansdown said: “Global stock markets have taken a Brexit hit, with European markets actually falling more than the Footsie. Safe haven assets have soared as investors sought security, with gold rising 5% and UK bond yields plunging to historic lows.
On the stock market, banks and housebuilders have been hit particularly hard this morning as markets try to factor in the Brexit effect on the UK economy.
Sterling has fallen to its lowest level for over 30 years, which will mean holidaymakers heading abroad in the coming weeks will have to dig extra deep to buy foreign currency.
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