This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jun/24/global-markets-ftse-pound-uk-leave-eu-brexit-live-updates

The article has changed 34 times. There is an RSS feed of changes available.

Version 2 Version 3
Global markets plunge after UK votes to leave EU – live updates Global markets plunge after UK votes to leave EU – live updates
(35 minutes later)
7.37am BST
07:37
Jill Treanor
Back at Cantor Fitzgerald in the City, traders are bracing for the selloff in half an hour:
All eyes are on the German Dax, as well as the FTSE 100, with both being called down almost 10%.
“Sterling is steady at $1.36” says one trader.
“Who ever thought it would be $1.48 and $1.36 on the same day,” his colleague observes, amid scores of screens showing the state of play in the markets.
At Cantor Fitzgerald trader indicting where the FTSE is likely to open pic.twitter.com/X146wdfxuL
UK stock market set for a bad start but worse over the Channel: German DAX down around 10% so far.
Updated
at 7.39am BST
7.33am BST
07:33
John McDonnell: Government must stabilise the economy
John McDonnell MP, Labour’s shadow chancellor, has commented on the market mayhem:
People will be waking up this morning to turmoil in the markets and the pound crashing, and fearing the emergency budget the Chancellor threatened to hike their taxes and cut public services.
The Government must now take steps to stabilise the economy, and to protect jobs, pensions and wages. Labour will not allow any instability to be paid for by the working people of this country?
Updated
at 7.33am BST
7.23am BST
07:23
German stock market to plunge
European stock markets could suffer even deeper falls than London, when trading begins in 40 minutes.
Germany’s DAX is currently expected to plunge by around 1,000 points at the open, a fall of around 10%. Bank shares are likely to suffer dramatic losses.
Latest German pre-market calls:Deutsche Bank -21%Commerzbank -18.9%VW -13%DAX called down 11.21%Lang un Schwarz @CNBCi @CNBC
DAX -9%CAC -10.50%EuroStoxx -11%Fasten seat belts
7.20am BST
07:20
Simon Goodley
David Cameron is due to give a statement at 8am, just as the markets open (so that’ll be fun).
Chris Beachamp, chief market analyst at IG, says the PM’s next move is crucial.
“Sterling now will depend on the shape of the UK government at about 4pm and if Cameron is still there. If he says he’s going it will be sold off again. The best thing he can do is hold the line here. We also have Spanish elections this weekend. To lose one government would be unfortunate. To lose two would be careless.”
7.17am BST
07:17
7.10am BST
07:10
Jill Treanor
At the Canary Wharf dealing floor at Cantor Fitzgerald they are preparing for the stock market to open at 8am.
One trader tells me he is expecting there to be “extended auctions” when the stock market opens. (These occur when share prices move more than 5%).
7.06am BST
07:06
Bank of England: We'll take 'all necessary steps'
Newsflash: A statement from the Bank of England:
The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks.
The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability.
Updated
at 7.07am BST
7.05am BST
07:05
Simon Goodley
Listening to traders talking to clients, it becomes very clear what a shock the result is to many in the City.
I’ve just overheard a conversation with one IG client who had a profitable position on the shares of one major high street bank. Well, it was profitable when the market closed last night.
The conversation now involved various scenarios of the shares crashing - plus talk of the client providing “more margin” ie, put some more cash into your account sunshine.
7.04am BST7.04am BST
07:0407:04
Tesco has suspended its currency service for holidaymakers amid the market turmoil.Tesco has suspended its currency service for holidaymakers amid the market turmoil.
Visitors to its holiday money site are greeted with a screen saying “We are sorry... the online ordering service is currently not available.”Visitors to its holiday money site are greeted with a screen saying “We are sorry... the online ordering service is currently not available.”
Holidaymakers who queued outside exchange bureaux yesterday to buy their euros ahead of going abroad this summer will be counting their blessings (as explained earlier).Holidaymakers who queued outside exchange bureaux yesterday to buy their euros ahead of going abroad this summer will be counting their blessings (as explained earlier).
7.01am BST7.01am BST
07:0107:01
If you’re just tuning in, you need to know that:If you’re just tuning in, you need to know that:
For those waking up to the news that the UK has voted to leave the EU... $GBP tumbles over 11%, #FTSE 100 futures fall 8%For those waking up to the news that the UK has voted to leave the EU... $GBP tumbles over 11%, #FTSE 100 futures fall 8%
6.54am BST6.54am BST
06:5406:54
The London Stock Exchange has told Reuters that they plan to open at 8am, as usual.The London Stock Exchange has told Reuters that they plan to open at 8am, as usual.
On Monday, chancellor George Osborne refused to rule out suspending trading if the Leave campaign won the referendum.On Monday, chancellor George Osborne refused to rule out suspending trading if the Leave campaign won the referendum.
London Stock Exchange to open as normal at 8am London timeLondon Stock Exchange to open as normal at 8am London time
UpdatedUpdated
at 6.55am BSTat 6.55am BST
6.50am BST6.50am BST
06:5006:50
Shares in two major banks, HSBC and Standard Chartered, have both tumbled by almost 10% in Hong Kong (where they are dual listed).Shares in two major banks, HSBC and Standard Chartered, have both tumbled by almost 10% in Hong Kong (where they are dual listed).
That gives you an idea of what to expect in London at 8am....That gives you an idea of what to expect in London at 8am....
#UK banks hit hard in HK trading ...HSBC -9% pic.twitter.com/zvvTTooUJY#UK banks hit hard in HK trading ...HSBC -9% pic.twitter.com/zvvTTooUJY
6.43am BST6.43am BST
06:4306:43
S&P: Britain to lose AAA credit ratingS&P: Britain to lose AAA credit rating
Britain is likely to lose its final triple-A credit rating, following the referendum vote.Britain is likely to lose its final triple-A credit rating, following the referendum vote.
S&P, which is the only Big Three agency to maintain Britain’s AAA rating, has indicated that a downgrade is now inevitable.S&P, which is the only Big Three agency to maintain Britain’s AAA rating, has indicated that a downgrade is now inevitable.
Moritz Kraemer, chief ratings officer for S&P, told the Financial Times that:Moritz Kraemer, chief ratings officer for S&P, told the Financial Times that:
“We think that a AAA-rating is untenable under the circumstances.”“We think that a AAA-rating is untenable under the circumstances.”
S&P: UK likely to lose AAA credit rating https://t.co/M8Q5X0tfscS&P: UK likely to lose AAA credit rating https://t.co/M8Q5X0tfsc
Moody’s and Fitch both downgraded the UK in early 2013.Moody’s and Fitch both downgraded the UK in early 2013.
6.40am BST6.40am BST
06:4006:40
The City’s trading floors will be a sea of red today, and a sea of discarded pizza boxes too:The City’s trading floors will be a sea of red today, and a sea of discarded pizza boxes too:
UpdatedUpdated
at 6.40am BSTat 6.40am BST
6.37am BST6.37am BST
06:3706:37
FTSE Futures called dn over 8% --510 pts at 5772 #Britain #Brexit @CNBCi @CNBCFTSE Futures called dn over 8% --510 pts at 5772 #Britain #Brexit @CNBCi @CNBC
6.34am BST
06:34
Patrick Collinson
Gold, the traditional safe haven in times of market turmoil, has soared in value overnight.
Bullion has jumped by 22% in sterling terms in a dramatic indication of worldwide panic over Britain’s exit from the EU.
At 10pm last night gold was trading at $1,256.50 an ounce, but it started to accelerate swiftly as early results from the referendum began to feed through.
This morning it is trading at $1,336. 66, a jump of 6.3% in dollar terms, but much more in sterling terms once the fall in the pound is taken into account.
Adrian Ash, head of research at BullionVault.com said the surge in the gold price was the fastest move against the pound in history.
“The surging gold price clearly shows the panic sweeping financial markets. Gold jumped 22% against the Pound overnight, its fastest ever move, leaping to new 3-year highs above £1000 per ounce.
6.32am BST
06:32
This scene will be playing out across the City, and Canary Wharf, as analysts and investors ponder how to react to events.
Looks like a big meeting going on at Citi! pic.twitter.com/Ytg2nWdXft
6.31am BST
06:31
The referendum result is emblazoned on electronic screens in Canary Wharf, for the benefit of any traders who slept through the drama of the last few hours.
Canary Wharf pic.twitter.com/XvAKEUkZKP
6.27am BST
06:27
Simon Goodley
Today’s market rout is going to create money-making (and losing) opportunities.
Chris Beauchamp, chief market analyst, says:
“People might see this as an opportunity. Maybe the FTSE will be seen as a buy to some. Others will say let’s go with the flow. Things tend to get worse, rather than better, at first. It is going to be a day of crazy volumes”.
There’s also Gallows humour in the City.
One client to IG trader: “Well, that proves Trump can win, doesn’t it?”
As if we didn’t have enough to worry about....
6.19am BST
06:19
Britain faces years of unstable conditions, and recession - RLAM
The Remain side warned during the campaign that Brexit could push Britain into recession.
Piers Hillier, chief investment officer at Royal London Asset Management, believes this will now happen:
‘On the back of this morning’s result we expect the UK will fall into a recession. Unfortunately I see unstable market conditions lasting for between three and five years whilst new trade agreements are drawn up.’
‘It is our view that the UK Government will be left with no choice but to stimulate the economy through fiscal and monetary means, flooding the system with liquidity if necessary.’
6.16am BST
06:16
Simon Goodley
The City and markets are often viewed as if they are prophets who can make money out of predicting what is coming next, but it doesn’t look as though too many anticipated Brexit.
One IG trader has just told me his clients were buying sterling right up to midnight. That changed when we got the news from Sunderland, before 1am.
6.11am BST
06:11
Jill Treanor
High street banks have been in touch with their regulator at the Bank of England through the night.
One senior retail banker tells me:
“Everybody is braced for a roller coaster day”.
The BoE is expected to ensure that liquidity isn’t a problem.The banks have had a year to plan for the referendum, and have contingency plans in place.
6.09am BST
06:09
What Brexit means for you
Patrick Collinson
Holidays
Sterling’s overnight collapse to little more than €1.20 against the euro means it is now worth nearly 15% less than the €1.42 rate enjoyed by holidaymakers last summer.
In terms of spending, that means a family who last year got through £500 while on holiday will this year need to find £75 more.
As for freedom to travel, Britons will in all probability be able to enjoy visa-free travel to EU countries for the foreseeable future.
Petrol
Get ready for the cost of petrol to rise in the next few days. Crude oil is priced in dollars, and once that figure is converted into today’s lower sterling rate, the price must inevitably rise.
Before the referendum, the crude price was $50 a barrel, and petrol was retailing at 112p a litre for unleaded. This morning the price of crude has moved little - it is up to $51, but the fall in sterling means that once translated into pounds, the price is likely to head towards 120p. It may make sense to fill up this morning. Note that fuel duty is 57.95p a litre for both petrol and diesel, and remains the biggest component of the price we pay. Motorists also pay 20% VAT on fuel.
Mortgages
All eyes will be on official Bank of England movements, with governor Mark Carney expected to speak after David Cameron sometime after 6am.
A hike in interest rates to defend the pound will hit millions of households on tracker-style mortgages. For example, around 700,000 people are on Nationwide’s 2.5% standard variable rate. If base rate goes up by 0.5%, it will take the cost of a £100,000 mortgage to £474 from £449.
But it is just as possible that interest rates could fall to provide liquidity and restore order to markets. A cut to zero from 0.5% would see repayments fall to £436 a month.
Each half-point change in rates adds or subtracts around £25 a month to most people’s repayment mortgages. People with interest-only mortgages see steeper changes - around £42 extra a month for every 0.5% rate rise.
6.07am BST
06:07
The pound has slumped by over 6% against the euro, to €1.22, in a wave of selling. It was worth €1.30 yesterday.
That means one euro is worth 81.5p, up from 76p on Thursday.
Trevor Charsley at AFEX, a foreign exchange firm, says:
What we’re seeing now is the market reacting with complete shock and bewilderment as the results unfold.
6.05am BST
06:05
Here’s our latest news story about the unfolding panic in world financial markets.
Related: Pound slumps to 31-year low after Brexit vote