EUROPE MARKETS: European Stocks Face Worst Day Since 2008 As U.K. Votes To Ditch The EU

By Carla Mozee and Victor Reklaitis, MarketWatch

Bank stocks, pound slammed as Brexit becoming a reality

European stocks plunged Friday, with investors fleeing risk assets after the U.K.'s historic referendum that left the country on course to leave the European Union.

The Stoxx Europe 600 tumbled 5.6% to 326.94, on track for its worst session since 2008, according to FactSet data. It earlier had been eyeing its biggest daily drop since October 1987, but has pared some losses.

The pan-European benchmark has flirted with a weekly drop, which would mark its fourth straight weekly decline, but it recently traded in the green for the week -- up 0.4%.

Shares of gold miner Randgold Resources Ltd. (RRS.LN) shot up 13% as investors sought safety in gold . Numerous shares on the Stoxx 600 were halted at the open.

In London, the FTSE 100 slid 1.9% to 6,215.97, bouncing back from steeper early losses.

The selloff kicked off after results from the Brexit referendum showed 51.9% of voters (http://www.marketwatch.com/story/brexit-is-reality-uk-media-says-2016-06-24) wanted the U.K. to ditch the EU, compared with 48.1% who preferred to stay. The decision for a Brexit will see the country leave a union that it's been a part of since 1973.

"With Britain shockingly (given the care-free trading during the rest of the week) opting to leave the EU, the global markets have committed hari-kari, diving head first into a variety of lows," said Connor Campbell, financial analyst at SpreadEx, in a note.

"With Brexit out of the way, the next thing is who's next," politically to make waves in the financial markets," said Brenda Kelly, an independent market analyst based in London, of the referendum result.

"You've got the National Front [in France] starting to come to the fore," she added. "You saw it in the Italian elections recently with the Five Star (Movement) very narrowly missing out on getting into power. So this could really start to turn things around, particularly if it's seen that the EU is in any sense punishing Britain, that could ramp up euroskepticism as well."

Read more:Will the euro survive Brexit's aftermath? (http://www.marketwatch.com/story/how-brexit-triggers-new-worries-about-the-survival-of-the-euro-2016-06-24)

And see:"Panic" and "bloodbath" -- analysts react to Brexit (http://www.marketwatch.com/story/panic-and-bloodbath-analysts-react-to-uks-decision-to-brexit-2016-06-24)

European bank stocks were mauled (http://www.marketwatch.com/story/european-banks-take-a-hammering-after-brexit-vote-2016-06-24), sending the Stoxx 600 Banks Index sliding 13%. London-based Barclays PLC (BCS) (BCS) tumbled 15%, though HSBC PLC (HSBA.LN) (HSBA.LN) was up 0.4% after erasing losses. British banks with overseas operations rely on passporting rules (http://www.marketwatch.com/story/why-a-brexit-could-kill-london-as-a-top-financial-hub-2016-06-01) to easily access EU markets.

Elsewhere in the group, Spain's Banco Santander SA (SAN) was yanked 18% lower, Germany's Deutsche Bank AG (DBK.XE) dropped 12%, and Commerzbank AG (CBK.XE) lost 11%.

Britain's Prime Minister David Cameron on Friday said he's resigning (http://www.marketwatch.com/story/uk-prime-minister-david-cameron-resigns-after-brexit-vote-2016-06-24) in the wake of the vote outcome.

Financial analysts had warned a Brexit would pummel European markets, as the event will spark uncertainty about growth prospects for the region and the network of trade, immigration, labor and other agreements between Britain and the other 27 members of EU. Many traders had been expecting a "remain" victory, and global stocks had been rallying ahead of the referendum.

Check out:How Brexit blindsided investors, in 5 charts (http://www.marketwatch.com/story/how-brexit-horribly-blindsided-investors-in-5-charts-2016-06-24)

Indexes: Germany's DAX 30 was knocked down 5.6% to 9,685.65, and France's CAC 40 dropped 6.3% to 4,186.03.

Spain's IBEX 35 fell 11% to 7,933.90, and Italy's FTSE MIB lost 11% to 16,070.65.

The euro was down 1.9% to $1.1101, and the pound sank 5% to $1.3833. But sterling was off its session lows (http://www.marketwatch.com/story/pound-bounces-sharply-as-brexit-results-come-in-2016-06-23), which had pushed the currency down more than 10% to below $1.33.

(END) Dow Jones Newswires

June 24, 2016 10:47 ET (14:47 GMT)

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