Sterling, UK stocks plunge

London, June 27

Britain battled to stop worldwide Brexit alarm today as sterling crumbled to a three-decade low against the dollar, while bank, airline and property shares plummeted.

Other world markets steadied a little after Britain’s June 23 vote to abandon the European Union wiped $2.1 trillion off international equity values Friday.

Analysts warned of a volatile period ahead as global investors grappled with the financial consequences of the Brexit referendum.

“Today I want to reassure the British people, and the global community, that Britain is ready to confront what the future holds for us from a position of strength,” Britain’s finance minister, George Osborne, declared before European financial markets opened.

Britain’s economy is “as strong as could be”, the minister said. The pound skidded to $1.3222 in morning London trade, its lowest level against the dollar since September 1985.

London’s FTSE 100 index fell 1.5% in morning trade, masking steeper falls in key sectors likely to be affected by Brexit.

One fifth of British business leaders are considering moving operations abroad after the referendum, according to a survey from leading business lobby group, the Institute of Directors. In eurozone equity trading, Frankfurt’s DAX 30 index dipped 0.9% to 9,472.49 points and the CAC 40 in Paris shed 1% to 4,067.02. — AFP