06282016Tue
Last update: Tue, 28 Jun 2016 10am

Stocks and Bonds: World

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The selloff in equities, sparked by Britain's vote to exit the European Union, continued on Monday, setting the Dow and S&P 500 on course for their biggest two-day percentage drop in 10 months. Banks continued to be among the worst hit. The S&P financial index was down nearly 2.48 percent by early afternoon as investors fret about London's future as the region's finance capital and fading chances of a US Federal Reserve rate hike.

Tokyo stocks jumped more than two percent Monday, rebounding from a rout that wiped more than $2 trillion off global financial markets in response to Britain's shock vote to quit the European Union. But analysts warned that the pain may not be over as the referendum result leaves a trail of unanswered questions about what happens next. London has yet to clearly outline a plan, while European leaders embarked on a flurry of diplomacy to hammer out a blueprint for addressing the surprise vote.
Britain's top share index extended the previous session's steep losses on Monday as the country's vote last week to leave the European Union hurled it into political and economic uncertainty, hitting banks, housebuilders and airlines hard. Some investors took refuge in firms producing gold, seen as a safe-haven asset, with Fresnillo closing up 7 percent after hitting a three-year high and Randgold Resources gaining 9 percent.
European shares fell on Monday, with banks making their biggest two-day loss on record as uncertainty over Britain's decision to leave the European Union continued to rock global markets. Spanish stocks outperformed after a general election raised hopes the country could solve a political stalemate, even though it was not immediately clear what kind of majority could be formed.
Indian shares rose slightly in choppy trade on Monday as forecast of an extended monsoon season sent cement makers and agriculture-related firms higher, offsetting lingering concerns from Britain's vote to leave the European Union. The broader NSE index ended up 0.08 percent at 8,094.70, after falling as much as 4.15 percent in the previous session, its biggest single-day percentage fall since February 11. The benchmark BSE index closed 0.02 percent higher at 26,402.96.
Most Southeast Asian stock markets recovered from early losses on Monday and closed higher, as investors digested uncertainties arising from Britain's decision to exit the European Union. Sentiment remained weak as doubts over when the world's fifth-largest economy would leave the EU and on what terms weighed on global markets. However, the moves on Monday were nowhere near as extreme as on Friday, when the shock of Britain's exit vote drove global stocks to their biggest decline in nearly five years.
Sri Lankan shares fell for a sixth straight session on Monday as investors turned cautious after the UK last week voted to leave the European Union. The benchmark Colombo stock index ended down 0.81 percent at 6,318.21, its lowest close since April 11. Sterling fell more than 2 percent, the euro took a hammering and stocks dropped again on Monday as Brexit drove investors to seek safety in the yen, gold and low-risk government debt.