Monday, 27 June 2016

Banks Pull Stocks Lower As Brexit Continues Global Rout



Britain's shock vote to leave the European Union roiled global markets for a second day on
Monday, hammering U.S. and European banks, lifting bond and gold prices, and dragging the British pound to a 31-year low.
U.S. stocks opened sharply lower, following European markets, pulled down by financial stocks amid uncertainty over London's future as the region's financial capital.

The S&P financial index .SPSY fell 2.5 percent. JPMorgan (JPM.N) was down 3.3 percent while Bank of America (BAC.N) was down 5.3 percent.
The Dow Jones industrial average .DJI fell 295.06 points, or 1.7 percent, to 17,105.69, the S&P 500 .SPX lost 39.83 points, or 1.95 percent, to 1,997.58 and the Nasdaq Composite .IXIC dropped 110.39 points, or 2.34 percent, to 4,597.59.
An index of European bank shares .SX7P fell 8.89 percent. Royal Bank of Scotland (RBS.L) fell 16 percent while Barclays (BARC.L) shed 18 percent.
Italian banks also suffered. UniCredit (CRDI.MI) fell more than 9 percent. The government was looking at options to help its banks and prevent further share price falls.
European stocks .FTEU3 took a beating for a second day, down 3.7 percent. Banks at a seven-year low helped push London's top share index .FTSE down by 2.5 percent.
Credit:Reuters

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