Stock markets braced for losses in face of political upheaval

Caitlin Fowler

June 26, 2016

stock market shares

Stock markets are bracing themselves for another round of losses as political turmoil grips the UK.

Following the vote to leave the EU on Friday more than $2tn was wiped off shares worldwide.

And Middle East markets, that opened today, have suffered heavy losses so far as markets react to both the Brexit decision and growing political uncertainty in the UK.

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Friday saw FTSE 100 housebuilders and financial services firms see large trading losses.

Taylor Wimpey, Persimmon and Barratt lost between 23% and 27% from the value of their shares. Property developer Berkeley fell by 19% whilst British Land saw an 18.3% decline.

Closer to home Legal & General and Standard Life saw their share prices fall by 17.5% and 17.2% respectively.

And following the potential of a coup in the Labour Party and unknowns around the future leadership of the Conservative Party spread-betting firm IG is expecting FTSE 100 shares to suffer fresh losses of around 2.8% when the markets re-open on Monday.

So far Egypt’s stock exchange has seen a 5% loss, Dubai is down 3.15% while Qatar and Kuwait have fallen around 1%.