Great Britain leaving the EU – London Stock Exchange collapses, GBP 100 billion wiped off

Citizens of Great Britain voted at the referendum to leave the EU, the British Electoral Commission confirmed.

The unexpected victory of the supporters of Britain’s exit from the EU surprised the financial markets, which are recording a considerable fall. The British pound has already gone down to the lowest level since 1985 and continues to fall. After a fall of over 10%, the pound is now 1.33 dollars, whereas following the closing of the polls when it was hoped that the pro-EU option would win, it went from 1.48 to 1.5 dollars.

Today’s fall exceeded the October 2008 fall when it dropped 6.5% or the “Black Wednesday” in 1992 when it dropped 4.9%.

The Bank of England “stands ready to provide” more than GBP 250 billion to aid the uninterrupted operation of markets following the Brexit vote, stated the governor Mark Carney today.

The central bank of Britain previously announced that it would take “all necessary steps” in order to secure the monetary and financial stability following the referendum.

London Stock Exchange collapses, GBP 100 billion wiped off

The stocks at the London Stock Exchange dropped 8%, with bank indexes losing about a third of the value, following Britain’s vote to exit the EU. As British media report, over GBP 100 billion was wiped off the London FTSE 100 index.

The damage to the Eurozone is even greater, with the Paris index KAK 40 losing over 10% of the value. The stocks of financial institutions like BNP Paribas and Credit Agricole dropped 17%, and those of Societe Generale 21%.

The Frankfurt index DAX also dropped 10% at one point, but then recovered slightly, recording a fall of 8.7%. The main index of the Madrid Stock Exchange dropped 12%, in Athens 15%, in Amsterdam 9%, and the main index of the Prague Stock Exchange dropped 10%.