'It's carnage' - Broker on financial markets after EU Referendum result

A broker has explained how the financial markets have been affected by the result of the EU referendum results, labeling it "carnage".

The value of the pound has dropped alarmingly and the stock market has plunged by 8%

Friday, June 24, 2016

A broker has explained how the financial markets have been affected by the result of the EU referendum results, labeling it "carnage". 

While the votes were being tallied, the value of the pound dropped alarmingly.

Now, the London stock market has plunged more than 8%. The FTSE 100 index has fallen more than 500 points to 5,808.72. Banks were especially hard hit, with Barclays and RBS falling about 30%.

Kathleen Brooks from City Index explained why the market has had this reaction to the vote.

"We've seen the biggest decline in the pound for 35 years," she told Paul Ross. "It's at the lowest level, this is completely unprecedented. 

"There's just so much selling going on. It's carnage."

Brooks explained how people will navigate the markets in the way of the vote.

"People will be a bit more cautious because there's so much uncertainty. The average punter is going to be very worried and people will have lost so much money on the back of this because it was so unexpected."

"Financial markets aren't good at anticipating unprecedented events.

"I think this really has hit them out of the blue and this is why we've seen such moves. 

Despite this, caller Pav from Harrow condemned the experts for "scare-mongering" to try to get more votes.

"I'm just astonished at the arrogance of economists and politicians," he told Paul. "I think this is a wake-up call.

"This is a free right where we can vote how we feel. We rely on markets, we rely on money, and these will calm down just like anyone else."