Investors are in panic mode, and clients here are telling their brokers to sell the British sterling and buy safe havens like the Japanese yen and gold.
Shares sensitive to what goes on in the British economy and that are listed in London and in Hong Kong, like HSBC – at one point dropping to its lowest level in seven years – Standard Chartered Bank, Prudential and Glencore are all taking a hit as investors sell, sell, sell and pour their money into traditional safe bets like gold.
Markets in India – which is a major investor in the UK – have also fallen. The Sensex opened down by more than 900 points or 3.43% lower.
Traders say they believe that the central bank in India may step in to support the Indian rupee, which is down more than 1.5%. Big Indian firms that have exposure to the UK like Tata steel and Tata motors have also been hit.
But as per us, Indian Central Bank should not have to support them cause it was just their market risk they invested their money in UK and Tata Steel or any major companies not giving any thing when they will make profit till this much years and if it was not happen then they will earn more profit then they will not giving any thing to Central Bank then why Bank have to support this companies in this situations.
In other Asian currencies – the Australian dollar, the Malaysian ringgit and the Korean won have all tumbled, reflecting nervousness and uncertainty about how markets around the world will react to this news.
“Great Fall of China’s stocks” last summer.
Markets had been pricing in a remain vote – this result is their worst nightmare.
And this is just the start: the process for the UK to leave will take at least two years to sort out. Governments in Asia will need to negotiate new trade deals with the UK, which until now has negotiated trade deals from within the EU.
The uncertainty has only just begun.