European stocks extend losses

French and German sharemarkets have opened 0.9pc lower, while London’s FTSE edged back.

Europe’s main stock markets slid at the start of trading on Wednesday, extending recent Brexit-driven losses, as the pound nosedived to a fresh 31-year low.

London’s benchmark FTSE 100 index dipped 0.2 per cent compared with Tuesday’s close to open at 6,530.43 points.

In the eurozone, Frankfurt’s DAX 30 dropped 0.9 per cent to 9,449.57 points and the Paris CAC 40 also shed almost 0.9 per cent to 4,127.20.

“Renewed worries about Brexit fallout, exacerbated by property fund suspensions, dragged Asian equities lower ... along with further declines by oil on global growth fears,” said Accendo Markets analyst Mike van Dulken.

Asian stocks tumbled as the negative effects of the Brexit vote sent traders fleeing to safety.

With last week’s global rally consigned to history, high-risk assets such as emerging currencies and oil have also been sent sliding as fears begin to kick in.

In Asian trading hours, the British pound sank to $US1.2819 at one point, its lowest level since mid-1985, before edging back slightly.

AFP