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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
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