KONTAK PERKASA FUTURES – History was made by the pound, plunging with U.K. stocks after U.K opted for a Brexit.
Sterling slid by the most on record against the USD, reaching its lowest level since 1985, as the nation voted to quit the European Union after more than twenty years. U.K. stocks falling, with banking stocks losing as much as 32 percent. The final tally, announced a little after 7 a.m. London time, showed voters had backed “Leave” by 52 percent to 48 percent. Prime Minister David Cameron said he would quit from his current position.
The 8.4 percent plunge by 5 p.m. London time was not its best day on record, more than 4.1 percent drop on 1992’s Black Wednesday, when the pound was forced out of Europe’s exchange-rate mechanism — the previous greatest daily drop. Sterling slumped to its lowest level in more than two years against the euro, and a gauge of anticipated swings against the dollar over the next month surged to a record.
Sterling reached $1.3229 earlier, the weakest since 1985. The U.K. currency falling by 6.4 percent to 81.72 pence per euro, for the biggest decline on record.
Bloomberg’s British Pound Index, which tracks sterling versus seven major peers, fell 8.3 percent, while the FTSE 100 Index of shares dropped by 3.2 percent. Bank stocks slid across Europe, with Royal Bank of Scotland Group Plc, Deutsche Bank AG, Credit Suisse Group AG and Barclays Plc among the biggest losers.
Source : bloomberg.com