Britain's shock vote to pull out of the European Union wiped $2.1
trillion from global equity markets on Friday as traders panicked in the
face of a new threat to the global economy.
Investors fled to the safety of gold, the yen and blue-chip bonds as the seismic shift in the structure of Europe left many huge questions hanging, including who will lead Britain following the resignation of Prime Minister David Cameron.
The Brexit vote sparked 8 % losses in the Tokyo and Paris bourses, nearly 7% in Frankfurt and more than 3% in London and New York.
In afternoon trade, France's benchmark CAC 40 index dived over 8 per cent to 4,098 while German key DAX slumped more than 6 per cent to 9,563.
As the carnage in the stock markets continued throughout the day, London Stock Exchange's key FTSE 100 fell nearly 4 per cent to 6,108 points in the afternoon.
Japanese shares were no better as the country's benchmark Nikkei 225 plummeted nearly 8 per cent to 14,952.02.
US stocks slumped in early trade and Dow Jones Industrial Average slid over 370 points to 17,640
Central banks stepped in to bolster confidence, promising to inject liquidity where needed and appearing to mitigate some of the sharpest losses.
Still, the pound crashed 10% to a 31-year low at one point, before rebounding slightly for a 9.1 per cent loss against the greenback in late trade.
The euro also plummeted, dropping 2.6 per cent on the dollar.
Benefitting from a massive safety selloff, gold jumped nearly five per cent and the yen surged 4.2 per cent against the dollar and 7.0 per cent on the euro. The dollar at one point fell below 100 yen for the first time since November 2013.
US 10-year treasury bond yields hit their lowest since 2012 at 1.42 per cent before edging higher, while the German 10-year bund fell into negative territory for the second time in history
Investors fled to the safety of gold, the yen and blue-chip bonds as the seismic shift in the structure of Europe left many huge questions hanging, including who will lead Britain following the resignation of Prime Minister David Cameron.
The Brexit vote sparked 8 % losses in the Tokyo and Paris bourses, nearly 7% in Frankfurt and more than 3% in London and New York.
In afternoon trade, France's benchmark CAC 40 index dived over 8 per cent to 4,098 while German key DAX slumped more than 6 per cent to 9,563.
As the carnage in the stock markets continued throughout the day, London Stock Exchange's key FTSE 100 fell nearly 4 per cent to 6,108 points in the afternoon.
Japanese shares were no better as the country's benchmark Nikkei 225 plummeted nearly 8 per cent to 14,952.02.
US stocks slumped in early trade and Dow Jones Industrial Average slid over 370 points to 17,640
Central banks stepped in to bolster confidence, promising to inject liquidity where needed and appearing to mitigate some of the sharpest losses.
Still, the pound crashed 10% to a 31-year low at one point, before rebounding slightly for a 9.1 per cent loss against the greenback in late trade.
The euro also plummeted, dropping 2.6 per cent on the dollar.
Benefitting from a massive safety selloff, gold jumped nearly five per cent and the yen surged 4.2 per cent against the dollar and 7.0 per cent on the euro. The dollar at one point fell below 100 yen for the first time since November 2013.
US 10-year treasury bond yields hit their lowest since 2012 at 1.42 per cent before edging higher, while the German 10-year bund fell into negative territory for the second time in history
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