Stocks Sink With Pound Amid Brexit Fallout as Haven Assets Jump
- Banks among biggest losers as equities slide in Europe, EM
- Asian index futures signal swing back to losses after bounce
The aftershocks of the U.K.’s vote to leave the European Union reverberated across financial markets after a weekend of political turmoil, with the pound extending its record selloff and European equities dropping to levels last seen in February.
The S&P 500 Index dropped 1.8 percent to its lowest level since mid-March as the rout in Europe’s equity benchmark rose to 11 percent over two days, the most since 2008. Sterling fell below Friday’s lows, sinking more than 3 percent to its weakest point since 1985 as S&P Global Ratings reduced its rating on the U.K.’s sovereign debt. Demand for haven assets boosted gold as 10-year Treasury yields slid to a four-year low. Crude oil extended its selloff amid concern Brexit will hit global growth, sapping energy demand.