European shares have reacted to Brexit most significant drop since 1987
Trading many shares it has been suspended in the first minutes after the opening due to sharp fluctuations.
European stock indexes on Friday show the most significant drop since October 1987, as the British voted for the UK’s withdrawal from the European Union (Brexit).
In this trade many shares has been suspended in the first minutes after the opening due to sharp fluctuations, says MarketWatch.
The composite index of the largest enterprises of the region Stoxx Europe 600 to 11:35 in Moscow fell by 6.5% – up to 320 points. Price growth is observed for at least 10 of the 600 stocks included in the calculation of the indicator.
British FTSE 100 indicator dropped to 3.9%, German DAX – 5.7%, French CAC 40 – 7.2%. Spanish Ibex 35 has fallen by 9.5%, the Italian FTSE MIB – almost 10%.
As reported, during the referendum 51.9% of Britons voted for the UK out of the EU (Brexit), which caused increased volatility in global financial markets. On Friday, British Prime Minister David Cameron has announced his impending resignation in connection with the referendum results. According to Cameron, the current government in the current line-up will work over the next three months.
The UK banks have opened bids incredible fall, losing over a minute about a third of the capitalization, but then the rate of decline has slowed: 11:30 Moscow time the value of securities Royal Bank of Scotland fell by 16,1%, Barclays – on 14,3%, HSBC Holdings – by 3.6%.
The capitalization of the Spanish Banco Santander fell by 18.4%, German Commerzbank and Deutsche Bank – more than 10.7%.
In addition, the price of the British developer Taylor Wimpey fell by 23.1% due to the fear of reduction in demand for UK property.
In this case, the share price of gold mining company Randgold Resources Ltd. soared by 15.1%, following a rise in gold prices, which enjoys demand among investors as a safe asset.
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