FTSE 100 set to lose £120BILLION when markets open amid Brexit panic

FTSE 100 set to lose £120BILLION when markets open amid Brexit panic

Traders are set to panic sell and dump stocks hacking around £120billion from Britain's top stock market, as it tumbles from yesterday's close of 6,338 to reach as low as 5,870. 

It comes after the pound fell by 10 per cent overnight to reach its lowest level since 1985.

Michael Hewson, chief market analyst at CMC Markets UK, said: "The highest voter turnout since 1992 suggests that while voters have engaged anew with the political process they have passed their verdict on their political overlords and while it hasn’t been unequivocal it has clearly shown that for all the economic warnings voters in the UK were not swayed by the hyperbole and seemed determined to send a message to the so called establishment.
 
"The message is being heard loud and clear by financial markets and how authorities respond in the coming hours is likely to determine what happens next."

Mr Hewson added: "The lack of liquidity in Asia markets is certainly compounding the falls overnight largely down to the shrinkage in the investment banking sector in the last few years as fewer players means less turnover.
 
"Sterling one month volatility has shot back above last week’s peaks as investors scramble around having been caught out on the wrong side as they foolishly did the equivalent of putting all their chips on a binary outcome."

More to follow..

It comes as banks came out to say they respected the decision of the British public and have plans in place for leaving the European Union.

Barclays chief executive Jes Staley said: "This is a significant decision and there will be many questions asked in the coming days and weeks about what happens next.

"The answers are complex but our position is not: we will not break our stride in delivering the Barclays of the future.

"We have stood in service of our customers and clients for over 325 years.

"We have been here for them through equally profound changes before. And no matter what has been laid before us, we have been here to help them achieve their ambitions."

Goldman Sachs boss Lloyd Blankfein said in a statement, he said: "We respect the decision of the British electorate and have been focused on planning for either referendum outcome for many months.

"Goldman Sachs has a long history of adapting to change, and we will work with relevant authorities as the terms of the exit become clear. Our primary focus, as always, remains serving our clients' needs."