Overseas Trading: Global Stocks Sink On 'Brexit' Backlash

Britain officially voted to leave the European Union (EU)

by Karee Venema

Published on Jun 24, 2016 at 8:48 AM
Updated on Jun 24, 2020 at 10:16 AM

Asian benchmarks plunged today, as the approved "Brexit" sparks uncertainty across global markets. Specifically, the U.K. yesterday voted to leave the European Union (EU), sending traders scrambling out of riskier stocks and into safe-haven assets. A surging yen -- which at one point hit a two-year high against the U.S. dollar -- sent Japan's Nikkei tumbling 7.9%, its worst one-day percentage drop since March 2011.

Elsewhere in the region, Hong Kong's Hang Seng fell 2.9%, as shares of British banks tumbled. South Korea's Kospi, meanwhile, gave back 3.1%, while China's Shanghai Composite dropped 1.3%.

European markets are swimming in red ink at midday, in the aftermath of the "Brexit" vote. Stocks are also reacting to the resignation of U.K. Prime Minister David Cameron -- who said "the country requires fresh leadership" -- and a steep sell-off in the British pound. After its recent run-up, sterling fell to a 30-year low against the U.S. dollar. Attempting to stem the bearish tide, Bank of England (BoE) Governor Mark Carney said the central bank was ready to take additional measures, if necessary, during this "period of uncertainty." At last check, the French CAC 40 is off 8.7%, the German DAX is down 7.2%, and London's FTSE 100 is 4.2% lower.

Overseas Trading June 24

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