Asian stocks have also been affected as the sterling continued to drop by more than 2% on Monday and markets grapple with the uncertainty caused by the referendum’s result in favour of the UK leaving the EU.
Confidence remains low, despite the easing of the global stock market decline that was encountered on Friday, due to investors’ continuing uncertainty about how much risk assets they should be selling. There are expectations of additional selling with associated falls in share prices.
The Brexit has posed many questions regarding the projected slowdown in both UK and European economies, and the negotiations of new trade agreements between the two, especially considering the instability within the EU at present.
It is thought that the Brexit might be the beginning of a new era of inward-looking policy-making, re-adjusting the current standard of globalisation.
The dollar fell 0.3% against the yen, which was kept relatively stable, while the euro fell 0.8% against the dollar, following talk of the crumbling of the EU.
The sterling fell 2% against the dollar, all the same remaining higher than the dramatic dip faced on Friday.
Safe haven assets, including precious metals and government debt, are experiencing high demand.
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