As more than £100 billion was wiped off London’s top-flight index and David Cameron said he would quit as Prime Minister following Britain’s decision to leave the European Union, City investors gave their reaction.
Nick Parsons, market strategist at National Australia Bank
“We are down between 5 and 10 per cent across markets in Asia, Europe, the UK and US. A fall of 5 per cent does not affect the economy, a fall of 10 per cent may affect the economy, and a fall of 20 per cent would definitely affect the economy and in a bad way.
“We need to see whether there is any co-ordinated action across the G7 and G20 countries and whether it is successful in calming investor nervousness or the current mood spirals from worry to something like panic. Early next week will be important in seeing how the market is going to view things, whether it feels Brexit will trigger real economic consequences.”
Richard Hunter, investment strategist at Wilson King Investment Management
“The Footsie is currently off about 7 per cent, which I would say about 4 per cent is directly down to the referendum news. There’s shock because late on the market had been more relaxed that there would be a Remain vote.
“It’s a broad-brush fall across the market, with financial and housebuilding stocks having taken a particular hit.”
David Buik, equities analyst with broker Panmure Gordon
“There has been a dramatic reaction because the market had thought Remain was going to win. Now there’s a complete turnaround. We have not just had a ‘correction’ in equity prices but a huge correction.
“I think the reaction is way overdone, however, and caught up with the apocalyptic rhetoric in the late stages of the referendum campaigns. Currently, the FTSE 100 is still 300 points above where it was in mid-February.”
Paul Mumford, senior fund manager at Cavendish Asset Management
“I think there will be bargain-hunters around. We were over 540 points off, now nearer 440 points, and there must be value out there, in companies like Barclays Bank which is off 20 per cent.
“I think things will calm down as time passes and people realise 70 per cent of FTSE 100 companies’ earnings are overseas and that the sharp fall in sterling will make our exporters very competitive. That will translate into earnings per share and dividends.”
Clem Chambers, chief executive of financial markets website ADVFN
“Currently I think it could have been even worse following the Leave victory. It would not have surprised me to see the Footsie off 10 per cent.
“I don’t think even now that a lot of people have calculated what it means. It’s unknowable how this is going to pan out, even if in the short-term the market falls are a value opportunity.
“But in the wider sphere, you could be talking five years of recession and five years of recovery. It’s an absolutely generational event.”