Stocks fall again due to UK vote uncertainty

Published 9:59 am Monday, June 27, 2016

LONDON – European stocks and the pound fell further today as concern grew over the potential economic costs of Britain’s vote to bring its country, the world’s fifth-largest economy, out of the European Union.

The British pound, which last week plunged to its lowest level since 1985, dropped another 2.4 percent to $1.3352, despite the British Treasury’s reassurances that the economy was strong enough to withstand the uncertainty.

European stock markets added to their painful losses from Friday, when concern over the vote outcome wiped out $2.1 trillion of stock value from Hong Kong to London to New York.

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Britain’s FTSE 100 was down 1.3 percent at 6,056 while Germany’s DAX shed 1.3 percent to 9,434 and France’s CAC 40 dropped 1.3 percent as well to 4,053.

Wall Street was set to drift lower on the open, too, with futures for the Dow Jones industrial average and the Standard and Poor’s 500 index down 0.3 percent each. Earlier, some Asian markets had bounced back somewhat after news reports said Japanese Prime Minister Shintaro Abe instructed financial officials to take steps to stabilize financial and currency markets.