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Great Britain’s vote to leave the European Union is having repercussions across global markets. Here are five things investors need to know.
A 2007 file photo shows businessmen outside The London Stock Exchange in central London.(Photo: Shaun Curry, AFP/Getty Images)
In the blink of an eye, as the Brexit shock sank in, British stocks and the pound took a heavy hammering, with the currency alone falling from its highest point against the dollar this year to the steepest drop in more than three <span style="color: Red;">*</span>decades.
In the first ten minutes of trading on Friday,<span style="color: Red;">*</span>London's FTSE index shed $164 billion of its value.
London's banking stocks, slammed by Brexit's impact on<span style="color: Red;">*</span>exports to Europe and the fall of the pound, lost more than $60 billion in value.
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The pound, which trades<span style="color: Red;">*</span>around-the-clock, fell 12% against the dollar,<span style="color: Red;">*</span>from $1.50 to below $1.35 in six hours.
The human impact of the pound's demise<span style="color: Red;">*</span>was visible outside the London branches of Thomas Cook travel, where long lines of anxious<span style="color: Red;">*</span>vacationers formed to buy foreign currency ahead of vacations.
As demand mounted, Thomas Cook<span style="color: Red;">*</span>suspended its online exchange in order to have enough sterling to serve the flood of customers at its outlets. Even then, the travel group<span style="color: Red;">*</span>put a 1,000-pound<span style="color: Red;">*</span>per person limit on the<span style="color: Red;">*</span>amount it would exchange<span style="color: Red;">*</span>for foreign currency.
Despite<span style="color: Red;">*</span>the immediate plunge, however, the<span style="color: Red;">*</span>British currency —<span style="color: Red;">*</span>ironically<span style="color: Red;">*</span>—<span style="color: Red;">*</span>seemed poised to recover much of its losses against its<span style="color: Red;">*</span>EU counterpart<span style="color: Red;">*</span>in the next few days, Jeremy Leach, chief executive officer at the asset managers Managing Partners Group,
tells The Telegraph.
"In the longer term, sterling will strengthen against the Euro because the UK’s economy is in much better shape than many of its European peers,” Leach says.
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