World stocks headed for one the biggest slumps on record on Friday as a decision by Britain to leave the European Union triggered 8 percent falls for Europe’s biggest bourses and a record plunge for sterling. Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from all the major central banks. Risk assets were scorched as investors fled to the traditional safe-harbors of top-rated government debt, Japanese yen and gold. Billions were wiped from share values as Europe saw London’s FTSE .FTSE drop 6 percent in early deals, Germany’s .DAX and France’s CAC 40 .FCHI slump 7.5 and 9 percent and Italian and Spanish markets plunge more than 11 percent.Full Article: World stocks in freefall as UK votes for EU exit | Reuters.
Jun 24 2016