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World Stocks In Freefall Following Britain’s Exit From EU

World Stocks In Freefall Following Britain's Exit From EU

Following the historic referendum in which Britain voted to leave the European Union (EU), stock markets and the British pound nosedived within minutes of markets opening on Friday.

The British vote to leave the 28-nation bloc sent sterling pound plunging to its lowest in more than thirty years.

Press TV reports:

The pound sank a staggering 10.1 percent at one point on Friday.

British stocks plunged nearly eight percent, and the German index has plummeted 10 percent.

The Royal Bank of Scotland, Barclays and Lloyds all lost close to a quarter of their market value.

The banking stocks of Deutsche Bank and Commerzbank both plummeted by more than 16 percent.

The Frankfurt DAX index also dropped by over 10 percent at one point.

Financials BNP Paribas and Credit Agricole plunged by 17 percent, while Societe Generale fell 21 percent.

In Asia, Tokyo’s benchmark stock index fell almost eight percent, the biggest one-day fall in almost five years.

Oil also fell in Asian markets as US benchmark West Texas Intermediate for delivery in August dropped over 2.5 dollars.

Meanwhile, Daniel Vernazza, an economist at UniCredit Research, told AFP that Britons voted without considering the dire consequences of their decision for the economy of the UK.

“The British people have voted against the economic warnings of the overwhelming majority of expert economic opinion. Not surprisingly, this morning the referendum result has sent shockwaves through global financial markets,” he said.

The development came after the British Leave campaign passed the winning post with a lead of more than one million votes and a margin of four percent. Voter turnout was at over 70 percent.

British Prime Minister David Cameron has said he will step down soon.