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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
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Brexit panic wipes $2 trillion off world markets - as it happened | Brexit panic wipes $2 trillion off world markets - as it happened |
(35 minutes later) | |
11.55pm BST | 11.55pm BST |
23:55 | 23:55 |
Closing summary: Brexit wipes $2 trillion (!!) off global markets | Closing summary: Brexit wipes $2 trillion (!!) off global markets |
It’s almost 24 hours since it first became clear that David Cameron’s EU referendum had not gone as the PM had planned. | It’s almost 24 hours since it first became clear that David Cameron’s EU referendum had not gone as the PM had planned. |
That realisation has triggered one of the most dramatic, volatile and downright scary trading sessions in the last decade. New estimates tonight say Brexit has wiped out over two trillion dollars of value, worldwide: | That realisation has triggered one of the most dramatic, volatile and downright scary trading sessions in the last decade. New estimates tonight say Brexit has wiped out over two trillion dollars of value, worldwide: |
S&P Global Broad Market Index (BMI) lost $2.08 TRILLION today, and are down $1.50 trillion year-to-date | |
Brexit has reverberated around global markets with $2.08trn wiped off global shares https://t.co/BBa4khw2Py | Brexit has reverberated around global markets with $2.08trn wiped off global shares https://t.co/BBa4khw2Py |
How bad was today's market sell-off? Over $2.1 trillion in value lost in stocks globally. pic.twitter.com/QRVSlTLjDW | How bad was today's market sell-off? Over $2.1 trillion in value lost in stocks globally. pic.twitter.com/QRVSlTLjDW |
So, as City traders hit the pillow (or in some cases the gin bottle), we should also wrap up. | So, as City traders hit the pillow (or in some cases the gin bottle), we should also wrap up. |
Here’s a very brisk summary of the state of play. | Here’s a very brisk summary of the state of play. |
The British pound has suffered its biggest one-day selloff in recent history, as the shock news the the UK is heading out of the European Union sparked panic in the markets. | The British pound has suffered its biggest one-day selloff in recent history, as the shock news the the UK is heading out of the European Union sparked panic in the markets. |
Sterling suffered a jaw-dropping plunge in the early hours of Friday in London, from $1.50 against the US dollar to just $1.33. It closed at $1.368, after a day to forget for many FX traders. | Sterling suffered a jaw-dropping plunge in the early hours of Friday in London, from $1.50 against the US dollar to just $1.33. It closed at $1.368, after a day to forget for many FX traders. |
The London stock market suffered steep losses at the open, but recovered to finish down 199 points or minus 3.1%. Bank stocks suffered badly, while some housebuilders shed a quarter of their value amid forecasts of a UK recession. | The London stock market suffered steep losses at the open, but recovered to finish down 199 points or minus 3.1%. Bank stocks suffered badly, while some housebuilders shed a quarter of their value amid forecasts of a UK recession. |
Related: Brexit vote leaves UK on brink of recession, economists say | Related: Brexit vote leaves UK on brink of recession, economists say |
The morning stopped being dramatic, and was upgraded to historic, at 8.15am London time when the prime minister resigned, | The morning stopped being dramatic, and was upgraded to historic, at 8.15am London time when the prime minister resigned, |
And that left central bankers (once again) to pick up the pieces. The Bank of England, the European Central Bank and the Federal Reserve have all promised to flood market with new liquidity, if needed, to prevent the Brexit shock turning into a new financial crisis. | And that left central bankers (once again) to pick up the pieces. The Bank of England, the European Central Bank and the Federal Reserve have all promised to flood market with new liquidity, if needed, to prevent the Brexit shock turning into a new financial crisis. |
Related: Bank of England tries to calm markets as pound and shares plummet | Related: Bank of England tries to calm markets as pound and shares plummet |
But that wasn’t enough to stop France’s CAC sliding by 8%, or Wall Street suffering its biggest one-day fall in 10 months. | But that wasn’t enough to stop France’s CAC sliding by 8%, or Wall Street suffering its biggest one-day fall in 10 months. |
And then Moody’s fired a warning shot at Britain, cutting its rating outlook to negative due to the economic problems caused by Brexit. | And then Moody’s fired a warning shot at Britain, cutting its rating outlook to negative due to the economic problems caused by Brexit. |
Britain also faces a political crisis tonight, of course, plus pressure from Europe to actually start the exit process.. | Britain also faces a political crisis tonight, of course, plus pressure from Europe to actually start the exit process.. |
Related: EU parliament leader: we want Britain out as soon as possible | Related: EU parliament leader: we want Britain out as soon as possible |
Saturday is going to be another dramatic day in the UK. Ditto Sunday. And then the markets reopen on Monday morning.... | Saturday is going to be another dramatic day in the UK. Ditto Sunday. And then the markets reopen on Monday morning.... |
So until then, a very good night! | So until then, a very good night! |
Updated | Updated |
at 12.10am BST | |
11.24pm BST | 11.24pm BST |
23:24 | 23:24 |
The record 8%-ish slump in the pound on Friday has raised fears that UK inflation could spike (as imports will cost more). | The record 8%-ish slump in the pound on Friday has raised fears that UK inflation could spike (as imports will cost more). |
That would be bad news for poorer citizens, says the IPPR thinktank tonight. | That would be bad news for poorer citizens, says the IPPR thinktank tonight. |
Using Treasury modelling of currency shocks, IPPR finds that a 2.3 percent increase in CPI will increase costs for the poorest households by 3.3 per cent, compared to a 1.6 per cent increase for the richest 10 percent of families. | Using Treasury modelling of currency shocks, IPPR finds that a 2.3 percent increase in CPI will increase costs for the poorest households by 3.3 per cent, compared to a 1.6 per cent increase for the richest 10 percent of families. |
This chart shows how those with less money suffer more from rising living costs: | This chart shows how those with less money suffer more from rising living costs: |
11.10pm BST | 11.10pm BST |
23:10 | 23:10 |
It’s 15 short (?!) hours since London’s stock markets opened, in a massive wave of selling that briefly wiped 550 points off the FTSE 100. | It’s 15 short (?!) hours since London’s stock markets opened, in a massive wave of selling that briefly wiped 550 points off the FTSE 100. |
Our Jill Treanor and Simon Goodley were watching events unfold in the City, while we stared open-mouthed at our Reuters terminals in the news room. | Our Jill Treanor and Simon Goodley were watching events unfold in the City, while we stared open-mouthed at our Reuters terminals in the news room. |
Here’s their report on the action: | Here’s their report on the action: |
Related: A rollercoaster ride for City traders on EU referendum night | Related: A rollercoaster ride for City traders on EU referendum night |
And here’s a flavour of a truly wild day... | And here’s a flavour of a truly wild day... |
On the dealing room of the financial trading firm IG, clients were calling in a state of near panic. One, who had a profitable position on Barclays shares when the market closed on Wednesday night, was now not only in the red but facing the indignity of being asked to deposit more cash into his account. | On the dealing room of the financial trading firm IG, clients were calling in a state of near panic. One, who had a profitable position on Barclays shares when the market closed on Wednesday night, was now not only in the red but facing the indignity of being asked to deposit more cash into his account. |
Another told his dealer it was the end of the world. | Another told his dealer it was the end of the world. |
By 7am Chris Beauchamp, IG’s chief market analyst, was worrying about the effect on markets if the prime minister, David Cameron, did not hold on to his job until the afternoon. | By 7am Chris Beauchamp, IG’s chief market analyst, was worrying about the effect on markets if the prime minister, David Cameron, did not hold on to his job until the afternoon. |
“Sterling now will depend on the shape of the UK government at about 4pm and if Cameron is still there,” he said. “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.” | “Sterling now will depend on the shape of the UK government at about 4pm and if Cameron is still there,” he said. “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.” |
10.25pm BST | 10.25pm BST |
22:25 | 22:25 |
Germany’s Bild says Britain’s decision is a Black day for Europe: | Germany’s Bild says Britain’s decision is a Black day for Europe: |
BILD: OUTsch! #tomorrowspaperstoday #bbcpapers pic.twitter.com/BSGNu8LakF | BILD: OUTsch! #tomorrowspaperstoday #bbcpapers pic.twitter.com/BSGNu8LakF |
Bild had made a last-ditch attempt to sway UK voters, promising to reserve sun loungers for Brits, and even recognise Geoff Hurst’s ‘on-the-line’ goal at the 1966 World Cup. To no avail. | Bild had made a last-ditch attempt to sway UK voters, promising to reserve sun loungers for Brits, and even recognise Geoff Hurst’s ‘on-the-line’ goal at the 1966 World Cup. To no avail. |
(anyway, it was definitely a goal, the Russian linesman said so) | (anyway, it was definitely a goal, the Russian linesman said so) |
10.06pm BST | 10.06pm BST |
22:06 | 22:06 |
Merci, guys, I think we’ll need it..... | Merci, guys, I think we’ll need it..... |
LIBÉRATION: Good Luck #tomorrowspaperstoday #bbcpapers pic.twitter.com/KON9hwq8kz | LIBÉRATION: Good Luck #tomorrowspaperstoday #bbcpapers pic.twitter.com/KON9hwq8kz |
9.51pm BST | 9.51pm BST |
21:51 | 21:51 |
Moody’s also warns that Britain’s trade with the rest of the world is probably going to suffer. | Moody’s also warns that Britain’s trade with the rest of the world is probably going to suffer. |
That’s another reason for downgrading the UK’s outlook to negative tonight. | That’s another reason for downgrading the UK’s outlook to negative tonight. |
Moody’s says: | Moody’s says: |
Moody’s expects a negative impact on the economy unless the UK government manages to negotiate a trade deal that largely replicates its current access to the Single Market. | Moody’s expects a negative impact on the economy unless the UK government manages to negotiate a trade deal that largely replicates its current access to the Single Market. |
However, at the moment there is substantial uncertainty over the type of trade agreement that could be achieved. | However, at the moment there is substantial uncertainty over the type of trade agreement that could be achieved. |
9.43pm BST | 9.43pm BST |
21:43 | 21:43 |
Moody's cuts outlook on UK debt to negative | Moody's cuts outlook on UK debt to negative |
Breaking news: Moody’s, the credit rating agency, has just lowered the outlook on Britain’s credit rating to negative from stable. | Breaking news: Moody’s, the credit rating agency, has just lowered the outlook on Britain’s credit rating to negative from stable. |
It says that Britain’s economic growth will be weaker, following the EU referendum vote. It also warns the the public finances will be weaker than previously forecast, meaning it will be harder to cut the deficit. | It says that Britain’s economic growth will be weaker, following the EU referendum vote. It also warns the the public finances will be weaker than previously forecast, meaning it will be harder to cut the deficit. |
Moody’s says that the Brexit vote will herald a “prolonged period of uncertainty” for the UK, with negative implications for growth in the medium terms. | Moody’s says that the Brexit vote will herald a “prolonged period of uncertainty” for the UK, with negative implications for growth in the medium terms. |
And it also warns that the effectiveness of economic policymaking could be ‘somewhat diminished’ by the decision. | And it also warns that the effectiveness of economic policymaking could be ‘somewhat diminished’ by the decision. |
A negative outlook means there is a greater danger of a country being downgraded. | A negative outlook means there is a greater danger of a country being downgraded. |
BREAKING: Moody's changes outlook on UK sovereign rating to negative from stable, affirms AA1 rating | BREAKING: Moody's changes outlook on UK sovereign rating to negative from stable, affirms AA1 rating |
It’s three years since Moody’s cut Britain’s AAA rating. It currently has the UK on AA+, the second highest rating. | It’s three years since Moody’s cut Britain’s AAA rating. It currently has the UK on AA+, the second highest rating. |
This morning Standard & Poor’s, the only firm that Britain still on triple-A, warned that it is likely to downgrade Britain. | This morning Standard & Poor’s, the only firm that Britain still on triple-A, warned that it is likely to downgrade Britain. |
Updated | Updated |
at 9.48pm BST | at 9.48pm BST |
9.30pm BST | 9.30pm BST |
21:30 | 21:30 |
Here’s Dominic Rushe and Sam Thielman’s report on Wall Street’s selloff: | Here’s Dominic Rushe and Sam Thielman’s report on Wall Street’s selloff: |
Related: UK's out vote proves a ‘game-changer’ for US stocks, oil and gold | Related: UK's out vote proves a ‘game-changer’ for US stocks, oil and gold |
Updated | Updated |
at 9.36pm BST | at 9.36pm BST |
9.08pm BST | 9.08pm BST |
21:08 | 21:08 |
Wall Street suffers biggest fall in 10 months | Wall Street suffers biggest fall in 10 months |
DING DING. The closing bell has rung on Wall Street, leaving shares deep in the red. | DING DING. The closing bell has rung on Wall Street, leaving shares deep in the red. |
The Dow Jones index has slumped by 608 points, or nearly 3.4%, at 17,402. Almost every share lost ground, with financial stocks worst hit. | The Dow Jones index has slumped by 608 points, or nearly 3.4%, at 17,402. Almost every share lost ground, with financial stocks worst hit. |
Wall Street tumbles most in 10mths after UK #Brexit vote. Dow closes down >600; financials post worst day since 2011 pic.twitter.com/ZDwe00Scaw | Wall Street tumbles most in 10mths after UK #Brexit vote. Dow closes down >600; financials post worst day since 2011 pic.twitter.com/ZDwe00Scaw |
The S&P 500, the broadest index of US stocks, tumbled by 76 points or 3.6% to 2,037 points. | The S&P 500, the broadest index of US stocks, tumbled by 76 points or 3.6% to 2,037 points. |
That’s its biggest one-day fall in 10 months, since global markets were hit by fears ove the Chinese economy in August 2015. | That’s its biggest one-day fall in 10 months, since global markets were hit by fears ove the Chinese economy in August 2015. |
The Nasdaq has been thumped hard too: | The Nasdaq has been thumped hard too: |
*NASDAQ COMPOSITE TUMBLES 4.1% IN BIGGEST ROUT SINCE 2011 | *NASDAQ COMPOSITE TUMBLES 4.1% IN BIGGEST ROUT SINCE 2011 |
8.58pm BST | 8.58pm BST |
20:58 | 20:58 |
A wild day in the markets is nearly over.... | A wild day in the markets is nearly over.... |
With just minutes until the close, the Dow is down more than 500 points https://t.co/LPXIuZgFYX pic.twitter.com/UIoXTysiP5 | With just minutes until the close, the Dow is down more than 500 points https://t.co/LPXIuZgFYX pic.twitter.com/UIoXTysiP5 |