Financial markets spooked by early Britain referendum results

Markets have reacted negatively to the news that the north-eastern British city of Sunderland voted strongly for leaving the European Union and that the lead of Remain ballots was smaller than expected in Newcastle-upon-Tyne.

- The Japanese Yen rose 2 per cent to its highest level since 2014.

- The euro fell to 1.135 dollars.

- The S&P-500-Future, a US stock indicator, lost 0.4 per cent.

- The Nikkei 225 future index dropped 1.2 per cent.

Earlier, US stocks rallied on indications that voters in Britain favoured remaining in the EU.

The British pound also strengthened to its highest level this year after a first survey suggested that a majority of voters, 52 per cent, want the country to remain in the bloc.

The pound temporarily rose above 1.50 to the dollar, a level not seen since December.

The Dow Jones Industrial Average rallied 230.24 points, or 1.3 per cent, to 18,011.07, charting the biggest gain since March 1, Bloomberg News reported. The Nasdaq Composite Index added 1.6 per cent, the biggest gain in a month. The S&P 500 added 1.3 per cent to 2,113.32.

Markets closed one hour before the polls, but traders were apparently influenced by two opinion polls conducted prior to Thursday's vote that showed a lead for the Remain campaign in Britain.

Bank stocks capped the best day in five weeks, according to Bloomberg, rising more than 2.1 per cent. Raw materials producers advanced for the sixth time in seven sessions, while energy companies rebounded.

Last update: Fri, 24/06/2016 - 08:49

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