Brexit fears wipe £100bn off FTSE 100 in four days 

Sterling and shares have slid as the City reacts to polls showing the Leave on track to win next week’s referendum

Brexit panic sends London shares sliding

Britain’s stock market has hit a new three-month low as Brexit worries sweep through the City.

The blue-chip FTSE 100 index has closed down 121 points at 5923, its lowest level since late February, and its fourth day of heavy falls. That wipes around £30bn off its value.

The Footsie has now shed 378 points since the start of trading on Thursday, when Brexit fears began to mount.

That means a staggering £98bn has been wiped off the value of Britain’s biggest companies in four trading days.

Sterling is also languishing at two-month lows; the pound has lost 1.1% against the US dollar to $1.4108 at pixel time.

The TNS poll, showing a seven-point lead for the Leave campaign, sent shares down heavily in late trading.

Mining shares are among the top fallers, reflecting fears about the global economy.

Housebuilders such as Taylor Wimpey and Barratt Development also suffered falls; they would be hit by a decline in the UK housing market if the Bank of England raised interest rates to prop up sterling.

The prospect of Britain voting to leave the EU next week also sparked big losses across Europe, sending markets to three-month lows.

• German DAX: down 1.5%
• French CAC: down 2.3%
• Spanish IBEX: down 1.9%

Joshua Mahony, market analyst at IG, says fear is gripping the markets – driving money into save-havens such as German bonds.

“Yet another day in the red for European markets has seen fears surrounding a potential Brexit continue to restrain risk appetite. The flight to safety is clearly evident in the foreign exchange markets, with money moving out of European currencies and into distant havens such as the yen and dollar.

With the news that Germany has joined the negative 10-year club, it is clear that investors are looking for a shelter from the storm that is moving in over the next two weeks.

Yet another EU referendum poll has hammered home the increasing threat of a Brexit next week, with the TNS poll coming out heavily in favour of the UK leaving the EU today. What initially looked like an anomaly, has turned into the norm, with 8 of the last 10 polls coming out in favour of a Brexit.

Source: theguardian – Brexit fears wipe £100bn off FTSE 100 in four days 

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