Brexit vote shaking Australian dollar, shares

The Australian dollar is on a roller-coaster ride as emerging results in the UK Brexit vote swing from an implied win for remaining or exiting the EU.

 Exterior view of Manchester Town Hall, the setting for the national count in the EU referendum, in Manchester, Britain, 23 June 2016. (AAP)

Exterior view of Manchester Town Hall, the setting for the national count in the EU referendum, in Manchester, Britain, 23 June 2016. (AAP) Source: AAP

Turbulent early results in the tight Brexit vote are shaking global markets with the Australian dollar soaring and plunging during morning trade.

The Aussie was at an eight week high of 76.37 US cents around 0800 AEST, just after polls closed in the historic vote on whether Britain will leave the European Union.

However the local currency plunged following the vote result in the northeast English city of Sunderland showing 61.3 per cent support for a Brexit.

That result came moments after only 50.7 per cent of voters in nearby Newcastle opted to remain in the EU, the end effect being an Australian dollar sell-off, with the currency plummeting 75.50 US cents at 1000 AEST.

Meanwhile, the Aussie leapt from 51.21 British pence earlier in the morning to 51.71 pence after the Sunderland result.

The Australian share market initially opened higher but with the early UK results shaking confidence in a remain vote it quickly fell flat.

At 1010 AEST on Friday, the benchmark S&P/ASX200 index was up 41.4 points, or 0.78 per cent, at 5,322.1 points.

But by 1040, after the Sunderland results were known, the index had sunk to 5272.1 points, down 8.6 points, or 0.16 per cent from the Thursday's close.

The volatility is expected to continue as tight results are declared throughout the day, ahead of a conclusive result expected from mid-afternoon local time.

 

 


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Source: AAP



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