European markets extend losses following Brexit vote

On Monday European stocks fell for a second day, extending losses as investors continued to speculate on the fallout from Britain’s shock vote to leave the European Union.

U.K. banks led a gauge of European lenders to the worst performance of the 19 industry groups on Stoxx Europe 600 Index, with Royal Bank of Scotland Group Plc losing 14 percent and Barclays Plc sliding 12 percent. Easy Jet Plc dragged traveland-leisure companies lower, tumbling 18 percent after warning that a drop-off in travel demand arising from a Brexit will pare earnings over the rest of summer period.

The Stoxx Europe 600 Index slid 2.3 percent to 314.63 at 11:24 a.m. in London. Shares tumbled the most since 2008 on Friday as the Brexit win set the stage for months of uncertainty while the U.K. negotiates its exit from the bloc. The FTSE 100 lost 1.2 percent even as Chancellor of the Exchequer George Osborne sought to reassure financial markets by saying that a contingency plan is in place to shore up the U.K. economy. The volume of European shares changing hands today was almost three times the 30-day average, while for British equities, it was more than threefold.

Asian stocks rebounded from the steepest slump since August after last week’s British vote to leave the European Union roiled global markets. Rallies in Japan and China overshadowed declines in other benchmark gauges across the region. The MSCI Asia Pacific Index rose 0.5 percent to 125.90 as of 4:27 p.m. in Hong Kong, erasing an earlier loss of as much as 0.3 percent. Japan’s Topix finished 1.8 percent higher, rebounding from its worst loss since the aftermath of the March 2011 earthquake.

Oil traded below $48 a barrel as the market remained volatile after the U.K. last week voted to leave the European Union. This article was compiled by Valletta Fund Management Limited, a member of the BOV Group.Valletta Fund Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000 Freephone: 80072344. E-mail: infovfm@bov.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.