Global markets fell sharply on Friday in the wake of the shock result the UK had voted to leave the European Union. Financials shares have been the hardest hit in terms of sector, and the main European share market index was down -8.6% on Friday. The UK market initially fell -8% before recovering to end down -3.1% (as the Bank of England pledged to support markets), while closer to home the ASX also lost -3.1% and the NZX was down -2.5%. Given the big one-day move, we will be watching developments very closely this week, as volatility is likely to remain high.
The initial reaction of markets has been one of panic and chaos, and it is set to be a period of exceptional uncertainty for the UK. It is very early to tell how the Brexit process will play out, which means more uncertainty is on the cards and volatility is set to remain. For equity markets globally, including AU/NZ, the surprise result and the unpredictability of the political process is likely to weigh on investor se...
Stock Markets, Simplified.