NEW YORK (Reuters) - The $2.08 trillion wiped off global equity
markets on Friday after Britain voted to leave the European Union was
the biggest daily loss ever, trumping the Lehman Brothers bankruptcy
during the 2008 financial crisis and the Black Monday stock market crash
of 1987, according to Standard & Poor's Dow Jones Indices.Global markets skidded following the unexpected result from the June 23 referendum, in which Britons voted to withdraw from the EU by a 52 percent to 48 percent margin.
Markets in mainland Europe were hit the worst, with Milan (.FTMIB) and Madrid (.IBEX) each down more than 12 percent for their biggest losses ever. Britain's benchmark FTSE 100 (.FTSE) was down nearly 9 percent at one point on Friday, but rallied to close down 3.15 percent.
The route started in Asia, with the Nikkei (.N225) down 7.9 percent, and carried over into Wall Street as the S&P 500 fell 3.6 percent.
Mohit Bajaj, director of ETF trading solutions at WallachBeth Capital LLC in New York, said the severity of the sell-off was partly due to investors misreading the outcome and betting the wrong way.
"People positioned themselves longer because they thought the market was going to pop," he said. "We knew that we were going to sell off pretty hard and people were kind of shocked by the market."
In
dollar terms, Friday's loss overtook the previous record from Sept. 29,
2008, the day when Congress rejected a $700 billion bailout package for
Wall Street during the financial crisis. On that day, global markets
lost $1.94 trillion.
0 comments :
Post a Comment