UK voters back Brexit, sending global stocks tumbling
People in the United Kingdom have voted to leave the European Union. The Brexit vote beat out the vote to stay 51.8% to 48.2%.
Investors are making their own voices heard after the historical vote, and world markets are plummeting. All three major averages (^DJI, ^GSPC, ^IXIC) are down about 2% or more following huge losses in European markets (^FTSE, ^GDAXI, ^FCHI). In the currency market, the British pound (GBPUSD=X) crashed to a more than 30-year low against major currencies. Oil prices (CLQ16.NYM) also tumbled on fears a global economic slowdown will reduce demand. But investors sought safety in gold (GCQ16.CMX). The precious metal soared this morning. Bond prices (^TNX) were sharply higher, while yields tumbled.
Check out what Marc Chandler, global head of currency strategy at Brown Brothers Harriman had to say in the video above about where he sees sterling’s next support level against the dollar and why he thinks the euro will reach parity against the dollar. Plus, why Sam Stovall, US equity strategist of S&P Capital IQ expects markets to rebound in the next couple of weeks.
