FTSE 100 heads south amid Brexit
On Friday, British shares headed south, thus reacting to the UK’s recent decision to break up with the European Union.
The FTSE 100 futures slumped 8.8%. Undoubtedly, it’s the heaviest dip since October 2008, as FactSet states.
Ahead of that, the sterling went down 10% against its major US counterpart, hitting $1.3372 compared with Thursday’s outcome of $1.4871.
On Friday, global markets are going to be rocked because British broadcasters project that the vast majority of British voters have supported their country’s exit from the EU.
Markets appeared to be extremely complacent regarding the Brexit risk. They were simply assured it would be approximately 25%, while the surveys showed the opposite.
By the way, the FTSE 100 had headed for a more than 4% weekly surge ahead of the Brexit vote, as surveys disclosed rather a narrow victory of the “Remain” side.
On Friday, bank stocks including HSBC PLC as well as Standard Chartered PLC are going to be in focus because the financial services sector mostly relies on the so-called passporting rules to access EU markets.