EU referendum: Shares and pound plunge on Leave vote


London - 24 Jun 2016

London's stock market has plunged following the UK's referendum vote to leave the EU.
The FTSE 100 index began the day by falling more than 8%, then regained some ground to stand nearly 5% lower.
Banks were hard hit, with Barclays and RBS falling about 30%, although they later pared losses to below 20%.
Earlier, the pound fell dramatically as the referendum outcome emerged. At one stage, it hit $1.3236, a fall of more than 10% and a low not seen since 1985.
By lunchtime, it had partially recovered, but was still nearly 8% down on the day.
The Bank of England said it was "monitoring developments closely" and would take "all necessary steps" to support monetary stability.
UK interest rates also are likely to hit zero in the next six months as the Bank of England moves to shore up the economy.
David Tinsley, UK economist at UBS said Brexit meant "sharply lower growth, a large drop in the pound, and further easing from the Bank of England."
He expects two rate cuts from Bank of England over the next six months
It would take rates from a current record low of 0.5% to zero.
Rates have been at 0.5% since 2009 as Britain has struggled to recover from the 2008 financial crisis.
UBS also expects the vote to put off rate rises in the US.