As per news from New York the investor panic over Britain leaving the EU spread to Wall Street as US stocks nosedived on the opening bell. The Dow, the S&P 500 and the Nasdaq were down over two percent after the opening bell and the markets are clearly shocked right now and it is clear they were complacent, wholly optimistic that a vote to remain was in the bag.
Currently the investors were dumping riskier assets to buy gold, dollars and US Treasury bonds and the yield on the American 10 year bond dropped its lowest level since 2012. During the day, gold has reached a 12-month high of $1,363 per troy ounce, before falling to $1,319, which is still a 4.45% rise compared to Thursday and the US Federal Reserve said it’s following the situation on the financial markets closely and is prepared to act to calm volatility.
Treasury Secretary Jack Lew and other finance ministers and central bank governors from the G7 has said on Friday they are ready to take steps to stabilize markets, as they understand that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability and the UK and other policymakers have the tools necessary to support financial stability, which is key to economic growth.
