Markets Tumbled On UK Vote To Exit EU
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MIAMI (CBSMiami) -- Britain's decision to drop out of the European Union has reverberated in stock markets around the globe.
In the opening moments of trading on Wall St., the Dow Jones Industrial plunged 500 points, or 3 percent, tje S&P 500 dropped 55 points, or 2.6 percent, and the Nasdaq Composite fell 174 points, or 3.5 percent. All rebounded slightly as trading continued.
Analysts say it could take a couple of weeks for the U.S. markets to stabilize.
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In a statement the Federal Reserve said it was "carefully monitoring developments in global financial markets" and was ready to inject "dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy."
London's stock market fell more than 7 percent within minutes as markets opened on Friday morning. The British pound plunged to its lowest level in more than three decades at opening before before recovering slightly to trade 6 percent lower at $1.39. Shares of British banks collapsed as much as 30 percent in opening deals.
Germany's main stock index dropped 10 percent in early trading while France's index saw a drop of about 7 percent.
Japan's Nikkei 225 dipped 8 percent, its biggest drop since 2008, while South Korea's Kospi index fell about 4 percent.