David Cameron has resigned as pm in the Britain, adopting the shock UK referendum outcome.
Voters in england surprised international markets after voting to go out of the European Union.?The pound hit a 1985 low during early trade the way it fell below 1.35 on the dollar. This came almost Round the clock after it hit a 2016 high as global markets priced from a remain outcome.?
“Panic are probably not too strong a word C the pound can have further to talk about our next day or two as markets digest good news. It’s worth noting that trading desks are usually not fully staffed and those merely the first reactions. We’re waiting around for the massive money to crank into action across the coming days and perhaps weeks, that could likely exert further downward pressure on sterling,” said Joe Rundle, head of trading at ETX Capital.?
Citing the Volatility Index (VIX) – which was at 18 a few days ago weighed against levels much more than 40 in August 2015 when a crash in Chinese equity markets sent shockwaves through international markets – Gary Booysen, a portfolio manager at Rand Swiss said markets were expecting a remain outcome. But he warned that a Brexit outcome would cause chaos, “If it so happens how they vote to depart, the markets are looking for an enormous shock. I do think the markets are going to scramble,” Booysen warned.?
The FTSE100 was down 6.66% during early trade.?Chris Gilmour, a trade analyst at ABSA Wealth and Investment Management , told Moneyweb previously how the movements in UK share values can have the “first and the majority of direct impact” over the South African companies classified by London and Johannesburg. The FTSE/JSE All Share was down much more than 3% was developed trade.?
At 10:24, the rand was at 14.93 on the dollar, down 4.35% through the previous close. Mike Keenan, a currency strategist at Barclays Africa told Moneyweb yesterday that any Brexit outcome would begin to see the rand depreciate by 3% to 5% against the dollar – a knee-jerk reaction – with further losses in the event that england economy falls right into a recession around the vote. The rand firmed by 4.46% against the pound to 20.49 and fell by 1.33% to 16.57 with the euro.
“The reverberations in the vote is going to be felt globally. The extent on the damage on asset prices is challenging to gauge however it’s more likely greater than anything since Lehmans at the very least. It’s fair to express we’ve not witnessed anything as if it along with the it’s likely that markets will highly volatile over the coming hours and days,” Rundle said.
Meanwhile, a safe and secure haven consideration in gold has surged. Bullion is trading at $1317.71 per fine ounce, up 4.92%. Bullion prices hit a two-week low yesterday as fears of the Brexit dissipated.?
The Bank of England is expected to announce stimulus measures to help with the united kingdom economy. Numerous G7 countries can also be expected to draw on contingency plans to stem losses.
