The Brexit victory has triggered selling in the markets. The pound immediately plunged to a 35-year low while gold jumped 4,52% to $1.318 an ounce, its highest since March 2014.
Speculation on a possible "rupture" of Europe is back among investors. After Asia which closed in decided red, the European stock exchanges score an epochal collapse: for the Ftse Mib it is a historic debacle, -12,48%, the list has never closed below 10% in the last thirty years , not even in the critical days of the collapse of Lehman Brothers and 11/12,35; a similar drop for Madrid -6,82% while Frankfurt -8,04%, Paris -2,76% and London -13,42% limited the collapse in the wake of the strong fall of the pound. The Athens Stock Exchange closed down 29,68% with the banks index suffering heavy losses of 411%. Overall, Europe burned XNUMX billion in today's session.
On Wall Street, the indices are trying to resist the sell-off: the S&P500 drops 2,67% and the Dow Jones 2,54%. The euro-dollar exchange rate dropped 2,63% to 1,1122. Oil, both Brent and WTI, dropped 4% on fears of a sharp slowdown in the global economy. On the macroeconomic front, the University of Michigan index at the end of June fell to 93,5 points, disappointing estimates, as did durable goods orders which fell by 2,2% in May.
At the end of the counting, against all forecasts, the "Leave" front prevailed with 51,9% of the votes, against 48,1% in favor of the "Remain". Central banks, the Bank of England, the ECB and the Fed, are already on alert and ready to act. Shortly after the official outcome of the vote, Prime Minister David Cameron announced his resignation.
The yield on the 10-year Bund returned negative, but after hitting a new all-time low of -0,13% this morning, it climbed back to -0,06%. The Btp suffers with the yield rising to 1,56% and the spread to 160 basis points.
The banking sector is the most penalized by sales, both in Europe and overseas. In Italy the drops are monstrous: Bper -24,61%, worst stock of the Ftse Mib, followed by Bpm -24,28%, Unicredit -23,79%, Banco Popolare -23,30%, Intesa Sanpaolo -22,94 %. Meanwhile, Borsa Italiana has not ordered the start of trading for Veneto Banca and has communicated that the provision for admission of the shares is to be considered lapsed.
All stocks in the main basket are in red. The freshmen of luxury resist, Luxottica -3,33%. Markets try to calculate the societal impacts of Britain's exit from the EU. Fiat Chrysler drops by 9,37%, recovering from -14% in early trading. "We do not expect Britain's exit from the European Union to have any particular impact on the industrial or other fronts for FCA, although the outcome of the referendum raises the question of what Europe of the future will be," he commented. a spokesperson for Fiat Chrysler Automobiles who added: "We do not expect that the fact of being tax headquartered in Great Britain will lead to financial consequences or changes in the governance of the group, given the global distribution of FCA's activities and operating offices in the various countries in the world".
