DHAKA: Wall Street and the FTSE 100 both fell sharply in a wild day of trading after the UK voted for Brexit.
The London blue-chip index fell 7% in early trading to just over 5,800 points but ended the day 3.15% lower at 6,138, reports the BBC.
New York and European markets all suffered even bigger falls, with the Dow Jones posting its biggest one-day slide in almost five years.
Sterling also plunged, falling more than 8% against the dollar and 6% against the euro.
Credit rating agency Moody’s cut the UK’s outlook from stable to negative on Friday night, saying the Brexit vote could result in weaker economic growth.
Wall Street fell sharply in late trading, with the Dow plunging more than 600 points, or 3.4%, to close at 17,400 points.
The S&P 500 fell 3.6% - the biggest daily slide in 10 months - while the Nasdaq slumped 4.1% to give the technology-focused index its worst day since 2011.
Jack Ablin, chief investment officer of BMO Private Bank, said, ‘This was really an event that caught most global investors flat-footed. We’re going to see more days like today as the collective wisdom may prove wrong in others cases, too’.
In London the FTSE 250, which mostly comprises companies that trade in the UK, shed 7.2% to close at 16,088 points.
Financial services group Aldermore was the biggest faller on the 250, down 32%, with house builder Crest Nicholson closing 26% lower.
House builders were also the three biggest fallers on the FTSE 100, with Taylor Wimpey suffering a 29% slide.
Liberum analyst Charlie Campbell said, ‘The outcome is bad for housebuilders’ shares as the combination of slowing GDP, rising longer-term rates and political uncertainty is like Kryptonite for that group of shares’.
However, the FTSE 100 index still ended the week higher than it started at 6,021 points.
Gold miner Randgold jumped 14%, while consumer-facing companies including GlaxoSmithKline, Unilever and Diageo all rose more than 3%.
The London market regained some poise after the Bank of England pledged to intervene to help shore up the markets.
BDST: 1600 HRS, JUN 25, 2016
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