The pound dived to fresh 31-year lows Wednesday, bond yields were squeezed and equities hammered as the growing shadow of the Brexit vote over the global economy sent traders fleeing to safety.
With last week's global rally -- inspired by promises of central bank stimulus after the poll -- consigned to history, high-risk assets such as emerging currencies and oil have also been sent tumbling as fresh fears kick in.
Safe-haven assets gold and silver reached two-year highs Wednesday, while yields on high-quality government bonds dropped further, and the yen and the Swiss franc rose again.
The pound, however, sank to $1.2798 at one point, its lowest level since June 1985, before bouncing back up above $1.29.
"Just when you thought it was 'safe to go back in the water', the pound got pounded as speculation around Brexit forms into something more concrete," said Stephen Innes, senior trader at OANDA Asia Pacific.
London's FTSE 100 index was down 1.4 percent in mid-afternoon trading, while Frankfurt's DAX 30 and the CAC 40 in Paris both dropped by 1.8 percent.
- Italian bank hopes -
Shares in Banca Monte dei Paschi di Siena rebounded in Milan after two straight session of heavy losses on hopes that the Italian government will help find a solution to the bank's debt problems. Some analysts fear a bank crisis in Italy and eurozone turmoil are looming.
Shares in Telecom Italia plunged following an announcement that Italy could soon get a low-cost mobile operator.
Wall Street opened slightly easier, but quickly slid further down.
Japan's Nikkei stock index closed down 1.9 percent -- having shed more than three percent at one point -- while Hong Kong lost 1.2 percent. Seoul 1.9 percent and Sydney eased 0.6 percent but Shanghai bounced in the afternoon to end up 0.4 percent.
Some analysts said the worst may not be over for the British currency.
"Even though investors should by now have priced into sterling slower growth, lower rates, renewed quantitative easing and prolonged political discord that does not mean they cannot mark it down further," analysts at Moneycorp said.
Hefty selling began in Europe on Tuesday afternoon when the head of the Bank of England said there was "evidence that some risks have begun to crystallise" following the shock June 23 vote for Britain to leave the European Union.
The BoE also relaxed commercial banks' capital requirements to boost lending, which analysts said indicated it was prepared to further loosen monetary policy to support the British economy.
- Yen rallies -
The measure provided support Tuesday to London stocks, but was unable to prevent a sell-off elsewhere.
Adding to the sense of gloom was news that three commercial property funds worth billions of dollars had suspended trade and blocked client redemptions.
The moves come as fears grow that the vote will lead companies -- particularly banks in London -- to shift operations from Britain, fuelling a surge in selling and a slump in prices.
Europe's financial sector is already under pressure after the European Central Bank warned Italy's number-three lender Banca Monte dei Paschi di Siena, the world's oldest bank, had dangerously high levels of bad debt.
Emerging market currencies floundered with South Korea's won losing 0.8 percent against the dollar, while the Indonesian rupiah shed 0.2 percent and the Malaysian ringgit 0.7 percent. Australia's dollar also sank 0.9 percent.
And the yield on Japanese 20-year government bonds dipped below zero for the first time, while other maturities also fell to new lows.
The drop underscored that investors were willing to sacrifice earnings and even accept small losses to keep their money in rock-solid government debt.
In Europe, the yield on 10-year German government bonds pushed below -0.20 percent to strike a record low of -0.205 percent.
On oil markets, both Brent crude and West Texas Intermediate were down.
- Key figures around 1340 GMT -
London - FTSE 100: DOWN 1.4 percent at 6,452.54
Frankfurt - DAX 30: DOWN 1.8 percent at 9,360.00
Paris - CAC 40: DOWN 1.8 percent at 4,090.50
New York - DOW: DOWN 0.6 percent at 17,840.62
Euro Stoxx 50: DOWN 1.8 percent at 2,762.97
Tokyo - Nikkei 225: DOWN 1.9 percent at 15,378.99 (close)
Hong Kong - Hang Seng: DOWN 1.2 percent at 20,495.29 (close)
Shanghai - Composite: UP 0.4 percent at 3,017.29 (close)
Pound/dollar: DOWN at $1.2952 from $1.3028 Tuesday
Euro/dollar: DOWN at $1.1079 from $1.1075
Dollar/yen: DOWN at 100.80 yen from 101.75 yen
AFP
Wed Jul 06 2016
![Pound, stocks dive as Brexit fans safety flight Pound, stocks dive as Brexit fans safety flight](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2016-06/41467102906_PoundSterling.jpg)
The pound sank to $1.2798 at one point, its lowest level since June 1985, before bouncing back up above $1.29. - AFP photo
![[KOLUMNIS] Konotasi 'Belanda' dalam pantun dan peribahasa Melayu [KOLUMNIS] Konotasi 'Belanda' dalam pantun dan peribahasa Melayu](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721207677_belanda.jpg)
[KOLUMNIS] Konotasi 'Belanda' dalam pantun dan peribahasa Melayu
Pantun merupakan akal budi orang Melayu, iaitu penciptaan bait-bait diksi yang indah yang mempunyai unsur alam dan persekitaran masyarakat.
![Suspek kes bunuh Nur Farah Kartini belum ditahan tugas - Polis Perak Suspek kes bunuh Nur Farah Kartini belum ditahan tugas - Polis Perak](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721098519_suspekbunuhNurFar.jpg)
Suspek kes bunuh Nur Farah Kartini belum ditahan tugas - Polis Perak
Polis Perak sedang menunggu hasil siasatan terhadap suspek yang juga anggota di kontinjen negeri itu sebelum tindakan jabatan diambil berhubung kes bunuh Nur Farah Kartini Abdullah.
![Kapal USS Blue Ridge berlabuh di Pelabuhan Klang, perkukuh hubungan Malaysia-AS Kapal USS Blue Ridge berlabuh di Pelabuhan Klang, perkukuh hubungan Malaysia-AS](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/71721207510_TLDM.jpg)
Kapal USS Blue Ridge berlabuh di Pelabuhan Klang, perkukuh hubungan Malaysia-AS
Kapal USS Blue Ridge (LCC19) berlabuh di Malaysia, tanda hubungan bilateral AS-Malaysia diperkukuh.
![Media diingatkan tidak keluar kenyataan langkau siasatan polis Media diingatkan tidak keluar kenyataan langkau siasatan polis](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-03/61711350467_TBHUSSEINOMARjp.jpg)
Media diingatkan tidak keluar kenyataan langkau siasatan polis
Pengamal media diingatkan supaya tidak mengeluarkan sebarang kenyataan melangkaui siasatan polis berhubung mana-mana kes dalam proses siasatan.
![Isu salah guna kuasa: Tiada kompromi terhadap anggota PBT terlibat - Dr Zaliha Isu salah guna kuasa: Tiada kompromi terhadap anggota PBT terlibat - Dr Zaliha](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/41718274360_ZalihaMustafa.jpg)
Isu salah guna kuasa: Tiada kompromi terhadap anggota PBT terlibat - Dr Zaliha
Terserah kepada SPRM atau mana-mana agensi penguat kuasa untuk mengambil tindakan sewajarnya terhadap individu yang melanggar peraturan.
![Vietnam sasar capai 100 peratus liputan jalur lebar di lebuh raya, landasan kereta api menjelang 2025 Vietnam sasar capai 100 peratus liputan jalur lebar di lebuh raya, landasan kereta api menjelang 2025](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61721207496_vietnamlebuhraya.jpg)
Vietnam sasar capai 100 peratus liputan jalur lebar di lebuh raya, landasan kereta api menjelang 2025
Sasaran ini adalah berikutan rancangan Kementerian Penerangan dan Komunikasi untuk meningkatkan kualiti rangkaian telekomunikasi mudah alih.
![Bunuh kekasih hamil: Bekas polis terlepas hukuman gantung Bunuh kekasih hamil: Bekas polis terlepas hukuman gantung](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/71721202906_bunuhkekasih.jpg)
Bunuh kekasih hamil: Bekas polis terlepas hukuman gantung
Seorang bekas anggota polis terlepas tali gantung selepas Mahkamah Persekutuan mengetepikan hukuman gantung terhadapnya kerana membunuh kekasihnya yang hamil pada 2015.
AWANI Ringkas: Presiden UMNO serah kepada rauf ambil tindakan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
J.D Vance pernah menjadi pengkritik utama Trump
J.D Vance yang diumumkan sebagai bakal Naib Presiden Amerika Syarikat yang akan bergandingan dengan calon Republikan, Donald Trump membuat pengakuan bahawa sebelum ini beliau merupakan pengkritik keras Trump.
Babydog ramal kemenangan besar Parti Republikan
Tidak cukup penganalisis politik, anjing pun dijadikan sandaran meramalkan siapa Presiden Amerika Syarikat.
![Tidak realistik untuk runding semula protokol - Suruhanjaya Eropah Tidak realistik untuk runding semula protokol - Suruhanjaya Eropah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-06/71655173500_MarosSefcovic.jpg)
Tidak realistik untuk runding semula protokol - Suruhanjaya Eropah
Badan eksekutif Kesatuan Eropah itu akan melancarkan prosedur pelanggaran bagi melindungi pasaran tunggal blok itu daripada risiko pencabulan protokol.
![Pasca-Brexit: Kekurangan bekalan makanan dibimbangi di UK Pasca-Brexit: Kekurangan bekalan makanan dibimbangi di UK](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2022-01/51641081595_Lorriesqueue.jpg)
Pasca-Brexit: Kekurangan bekalan makanan dibimbangi di UK
Bermula 1 Jan, pengimport mesti membuat pengisytiharan kastam penuh mengenai barangan yang dibawa masuk ke UK dari EU atau negara lain.
![Pemuda UMNO cadang pembentukan Kabinet Perang Pemuda UMNO cadang pembentukan Kabinet Perang](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-07/81625726548_DatukDrAsyrafWajd.jpg)
Pemuda UMNO cadang pembentukan Kabinet Perang
Perdana Menteri boleh meletakkan jawatan atau menasihati Yang di-Pertuan Agong untuk membubarkan Parlimen jika tidak lagi mendapat majoriti.
![Berita antarabangsa pilihan sepanjang hari ini Berita antarabangsa pilihan sepanjang hari ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-04/51617796933_BAP.jpg)
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah antara yang paling menjadi tumpuan sepanjang hari ini.
![Pasca-Brexit: Kesatuan Eropah tidak akan runding semula perjanjian asal Pasca-Brexit: Kesatuan Eropah tidak akan runding semula perjanjian asal](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-07/71626997154_UrsulavonderLeyen.jpg)
Pasca-Brexit: Kesatuan Eropah tidak akan runding semula perjanjian asal
Kerajaan UK sebelum ini menyatakan, pemeriksaan sempadan yang dikenakan terhadap barangan dari Ireland Utara terbukti tidak dapat dilaksanakan.
![Berita antarabangsa pilihan sepanjang hari ini Berita antarabangsa pilihan sepanjang hari ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-04/51617709639_BAP.jpg)
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah antara yang paling menjadi tumpuan sepanjang hari ini.
![Hubungan dengan EU: UK minta runding semula babitkan peraturan dagang Hubungan dengan EU: UK minta runding semula babitkan peraturan dagang](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-07/61626914345_TBBORIS.jpg)
Hubungan dengan EU: UK minta runding semula babitkan peraturan dagang
Protokol itu perlu ditulis semula kerana ia melemahkan proses perdamaian dan mempengaruhi kehidupan rakyat di Ireland Utara.
![Pasca-Brexit: Parlimen Eropah akan sahkan perjanjian perdagangan Pasca-Brexit: Parlimen Eropah akan sahkan perjanjian perdagangan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-04/81619526725_TBEUBREXITx.jpg)
Pasca-Brexit: Parlimen Eropah akan sahkan perjanjian perdagangan
Rancangan asal EU bertujuan mengelak pembukaan sempadan antara Ireland dengan Ireland Utara menjadi pintu belakang bagi bekalan vaksin.
![Nelayan Britain berdepan risiko hilang pendapatan susulan larangan eksport EU Nelayan Britain berdepan risiko hilang pendapatan susulan larangan eksport EU](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2019-04/41554784867_MAKANANLAUT.jpg)
Nelayan Britain berdepan risiko hilang pendapatan susulan larangan eksport EU
Larangan itu dibuat selepas Britain meninggalkan EU pada 1 Januari lalu, yang mana hasil laut yang berkenaan perlu dibersihkan sebelum digunakan dan tidak boleh dijual kepada 27 ahli blok berkenaan.
![Kalau tidak politik, kami nak main apa, Mak Yong, congkak? - Salahuddin Ayub Kalau tidak politik, kami nak main apa, Mak Yong, congkak? - Salahuddin Ayub](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-01/81611040500_SalahuddinAyub.jpg)
Kalau tidak politik, kami nak main apa, Mak Yong, congkak? - Salahuddin Ayub
Pakatan Harapan (PH) akan terus berpolitik demi memastikan suara rakyat terus didengari meskipun ada desakan supaya sebarang bentuk politik dihentikan buat masa ini.