Sterling falls and bank, airline and property shares tumble

1 year ago
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UK financial markets remain volatile in the wake of the Brexit vote, with sterling plunging to a 31-year low against the dollar, and some share trading temporarily halted.

Yields on 10-year government bonds sank below 1% for the first time.

Shares in airlines, housebuilders and banks were worst hit, with sharp falls causing a momentary halt in trading as automatic circuit breakers kicked in.

The falls came after Chancellor George Osborne tried to calm the markets.

In a statement before the financial markets opened, his first since the referendum result, the chancellor said the UK was ready to face the future “from a position of strength”.

He also indicated there would be no immediate emergency Budget.

But the upheaval on the financial markets continued.
The pound fell 3.6% to $1.3170, having earlier hit a fresh 31-year low of $1.3151, sinking below the level it had fallen to on Friday when it recorded its biggest one-day fall ever against the dollar. Against the euro, it was down 2.5% at €1.2016.

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