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Brexit fears drive London stock market down to three-month low - live Brexit fears wipe £100bn off FTSE 100 in four days - business live
(35 minutes later)
4.49pm BST
16:49
Brexit panic sends London shares sliding
Britain’s stock market has hit a new three-month low as Brexit worries sweep through the City.
The blue-chip FTSE 100 index has closed down 121 points at 5923, its lowest level since late February, and its fourth day of heavy falls. That wipes around £30bn off its value.
The Footsie has now shed 378 points since the start of trading on Thursday, when Brexit fears began to mount.
That means a staggering £98bn has been wiped off the value of Britain’s biggest companies in four trading days.
Sterling is also languishing at two-month lows; the pound has lost 1.1% against the US dollar to $1.4108 at pixel time.
The TNS poll, showing a seven-point lead for the Leave campaign, sent shares down heavily in late trading.
Mining shares are among the top fallers, reflecting fears about the global economy.
Housebuilders such as Taylor Wimpey and Barratt Development also suffered falls; they would be hit by a decline in the UK housing market if the Bank of England raised interest rates to prop up sterling.
The prospect of Britain voting to leave the EU next week also sparked big losses across Europe, sending markets to three-month lows.
Joshua Mahony, market analyst at IG, says fear is gripping the markets - driving money into save-havens such as German bonds.
Yet another day in the red for European markets has seen fears surrounding a potential Brexit continue to restrain risk appetite. The flight to safety is clearly evident in the foreign exchange markets, with money moving out of European currencies and into distant havens such as the yen and dollar.
With the news that Germany has joined the negative 10-year club, it is clear that investors are looking for a shelter from the storm that is moving in over the next two weeks.
Yet another EU referendum poll has hammered home the increasing threat of a Brexit next week, with the TNS poll coming out heavily in favour of the UK leaving the EU today. What initially looked like an anomaly, has turned into the norm, with 8 of the last 10 polls coming out in favour of a Brexit.
And on that note, I’m wrapping up for day. Our politics liveblog has full action from the Referendum campaign.
Related: EU referendum live: TNS poll gives leave campaign seven-point lead
Thanks for reading and commenting. GW
Updated
at 5.04pm BST
4.30pm BST4.30pm BST
16:3016:30
In other news, retail magnate Sir Philip Green has just announced that he will attend a parliamentary hearing tomorrow on the collapse of BHS.In other news, retail magnate Sir Philip Green has just announced that he will attend a parliamentary hearing tomorrow on the collapse of BHS.
Green had threatened not to appear unless Frank Field, the chairman of the work and pensions committee, stepped down, and accused Field of trying to destroy his reputation.Green had threatened not to appear unless Frank Field, the chairman of the work and pensions committee, stepped down, and accused Field of trying to destroy his reputation.
Now, though, Green has decided to give his side of the story.Now, though, Green has decided to give his side of the story.
"I will do my best to answer all the questions put to me in an honest and open way" - Sir Philip Green confirms he will appear before MPs."I will do my best to answer all the questions put to me in an honest and open way" - Sir Philip Green confirms he will appear before MPs.
He’ll have to explain why he sold BHS for £1 to a man with no retail experience, how much he took out of the company during his ownership, and how he plans to help fix its pension black hole.He’ll have to explain why he sold BHS for £1 to a man with no retail experience, how much he took out of the company during his ownership, and how he plans to help fix its pension black hole.
Kick-off 9.15am sharp!Kick-off 9.15am sharp!
Related: Sir Philip Green's grilling by MPs: the 11 key questionsRelated: Sir Philip Green's grilling by MPs: the 11 key questions
4.17pm BST4.17pm BST
16:1716:17
The Brexit referendum has come at a tricky time for the global economy.The Brexit referendum has come at a tricky time for the global economy.
Investors have been fretting for months about China’s slowing economy, while the eurozone’s weak recovery has been an ongoing sore.Investors have been fretting for months about China’s slowing economy, while the eurozone’s weak recovery has been an ongoing sore.
So the prospect of Europe being thrown into political crisis has “added fuel to the fire” for nervous investors, says Jasper Lawler of CMC Markets.So the prospect of Europe being thrown into political crisis has “added fuel to the fire” for nervous investors, says Jasper Lawler of CMC Markets.
Markets are already worried about slowing global growth and the inability of central bank policy to stem the decline. The June 23 EU referendum gives a specific date when all the market’s troubles could come to a head.Markets are already worried about slowing global growth and the inability of central bank policy to stem the decline. The June 23 EU referendum gives a specific date when all the market’s troubles could come to a head.
Stocks and the British pound are being shunned in favour of havens like German and British bonds, the yields of which have struck new record lows. Expectations of weak global growth and ever-enduring easy monetary policy, likely to be reinforced at central bank meeting this week, is seeing a mass exit from equities and feeding demand for bonds, sending yields to record lows.Stocks and the British pound are being shunned in favour of havens like German and British bonds, the yields of which have struck new record lows. Expectations of weak global growth and ever-enduring easy monetary policy, likely to be reinforced at central bank meeting this week, is seeing a mass exit from equities and feeding demand for bonds, sending yields to record lows.
4.02pm BST4.02pm BST
16:0216:02
The London stock market has now suffer four days of steady losses, as the City has become steadily consumed by the looming EU vote.The London stock market has now suffer four days of steady losses, as the City has become steadily consumed by the looming EU vote.
Mihir Kapadia, CEO at Sun Global Investments, says the markets are being hit hard by Brexit uncertainty.Mihir Kapadia, CEO at Sun Global Investments, says the markets are being hit hard by Brexit uncertainty.
‘’The risk of a potential ‘Brexit’ is dominating global markets today as we enter the home straight towards the influential EU referendum vote on 23 June.‘’The risk of a potential ‘Brexit’ is dominating global markets today as we enter the home straight towards the influential EU referendum vote on 23 June.
Investors seem to have suddenly woken up to Brexit risk and have become nervous....Investors seem to have suddenly woken up to Brexit risk and have become nervous....
3.52pm BST3.52pm BST
15:5215:52
The London stock market has hit a new three-month low as it staggers towards the close with fresh losses.The London stock market has hit a new three-month low as it staggers towards the close with fresh losses.
The FTSE 100 index of blue-chip shares just fell as low as 5944 points, a loss of 101 points today.The FTSE 100 index of blue-chip shares just fell as low as 5944 points, a loss of 101 points today.
Almost every share has lost ground. Mining group Anglo American is the worst performer, down 4.6%.Almost every share has lost ground. Mining group Anglo American is the worst performer, down 4.6%.
3.35pm BST3.35pm BST
15:3515:35
Ouch. The pound just slipped below $1.41 for the first time in two months.Ouch. The pound just slipped below $1.41 for the first time in two months.
The TNS poll, showed Leave holding a 7-point lead, is clearly weighting on the markets.The TNS poll, showed Leave holding a 7-point lead, is clearly weighting on the markets.
Risk-off drift-offRisk-off drift-off
3.33pm BST3.33pm BST
15:3315:33
Investors haven’t been this worried about a sterling crisis since the aftermath of Lehman Brothers’ collapse:Investors haven’t been this worried about a sterling crisis since the aftermath of Lehman Brothers’ collapse:
The cost of "insuring" against sharp movement in the£ appears to be back to financial crisis levels - up 4.3% today pic.twitter.com/xWW1nzyCWkThe cost of "insuring" against sharp movement in the£ appears to be back to financial crisis levels - up 4.3% today pic.twitter.com/xWW1nzyCWk
3.13pm BST3.13pm BST
15:1315:13
Pound hit after TNS gives Leave a 7% leadPound hit after TNS gives Leave a 7% lead
The pound just took another knock, after the TNS polling company reported that the Leave campaign have a “significant lead” in the run-up to the EU referendum.The pound just took another knock, after the TNS polling company reported that the Leave campaign have a “significant lead” in the run-up to the EU referendum.
TNS says that Leave is on 47% of the vote, with Remain trailing at 40% (with 13% of voters still undecided).TNS says that Leave is on 47% of the vote, with Remain trailing at 40% (with 13% of voters still undecided).
And sterling is now down one and a half cents, or 1%, at $1.411 - its lowest point of the day.And sterling is now down one and a half cents, or 1%, at $1.411 - its lowest point of the day.
If the TNS poll just released is genuine then we have Leave : 47% (+4)Remain: 40% (-1)Don't Know: 13% (-3)#BrexitIf the TNS poll just released is genuine then we have Leave : 47% (+4)Remain: 40% (-1)Don't Know: 13% (-3)#Brexit
2.59pm BST2.59pm BST
14:5914:59
ECB and Bank of England to backstop markets after Brexit voteECB and Bank of England to backstop markets after Brexit vote
Insiders at the European Central Bank have revealed they would publicly pledge to backstop financial markets, in partnership with the Bank of England, should Britain vote to leave the European Union.Insiders at the European Central Bank have revealed they would publicly pledge to backstop financial markets, in partnership with the Bank of England, should Britain vote to leave the European Union.
It’s a clear signal that central bankers are preparing for Britain to shock the global markets and vote for Brexit.It’s a clear signal that central bankers are preparing for Britain to shock the global markets and vote for Brexit.
Reuters has the story. Here’s a flavour:Reuters has the story. Here’s a flavour:
The preparations illustrate the heightened state of alert ahead of the June 23 referendum, which will help determine Britain’s future in trade and world affairs and also shape the EU. The pound and euro have lost value on fears a Brexit could tip the 28-member bloc into recession.The preparations illustrate the heightened state of alert ahead of the June 23 referendum, which will help determine Britain’s future in trade and world affairs and also shape the EU. The pound and euro have lost value on fears a Brexit could tip the 28-member bloc into recession.
Such an announcement from the ECB would come on June 24 if an early-morning result showed that British voters had chosen to leave the EU, according to the sources. The aim is to underpin investor confidence across Europe and contain further market jitters.Such an announcement from the ECB would come on June 24 if an early-morning result showed that British voters had chosen to leave the EU, according to the sources. The aim is to underpin investor confidence across Europe and contain further market jitters.
“There will be a statement to do whatever it takes to maintain adequate market liquidity,” said one senior central bank official, who spoke on condition of anonymity.“There will be a statement to do whatever it takes to maintain adequate market liquidity,” said one senior central bank official, who spoke on condition of anonymity.
The ECB’s pledge would involve opening so-called swap lines with the Bank of England, allowing euros and sterling to be exchanged and effectively making unlimited funding in both currencies available to European banks, the sources said.The ECB’s pledge would involve opening so-called swap lines with the Bank of England, allowing euros and sterling to be exchanged and effectively making unlimited funding in both currencies available to European banks, the sources said.
Here’s the full story:Here’s the full story:
Exclusive: ECB would pledge to backstop markets after a Brexit - sourcesExclusive: ECB would pledge to backstop markets after a Brexit - sources
ECB ready for Brexit: "There will be a statement to do whatever it takes to maintain adequate market liquidity" https://t.co/CmVCiGti2rECB ready for Brexit: "There will be a statement to do whatever it takes to maintain adequate market liquidity" https://t.co/CmVCiGti2r
2.50pm BST2.50pm BST
14:5014:50
The US stock market has opened calmly, bring some order to proceedings after a volatile European session.The US stock market has opened calmly, bring some order to proceedings after a volatile European session.
The Dow Jones industrial average has dipped by 0.1%, or 15 points, while the Nasdaq index of tech stocks is up 0.2%.The Dow Jones industrial average has dipped by 0.1%, or 15 points, while the Nasdaq index of tech stocks is up 0.2%.
Investors may be keen to sit sight until the UK’s referendum has been cleared up; and few believe the Federal Reserve could raise interest rates at this week’s two-day meeting (which finishes tomorrow).Investors may be keen to sit sight until the UK’s referendum has been cleared up; and few believe the Federal Reserve could raise interest rates at this week’s two-day meeting (which finishes tomorrow).
Christopher Vecchio, currency analyst at DailyFX, says:Christopher Vecchio, currency analyst at DailyFX, says:
With all the attention on the Brexit, the central bank meetings this week have seemed to take a back seat. This makes sense, though. If the Fed hikes, and there is a Brexit? The Fed will have to backtrack, which will cost them credibilityWith all the attention on the Brexit, the central bank meetings this week have seemed to take a back seat. This makes sense, though. If the Fed hikes, and there is a Brexit? The Fed will have to backtrack, which will cost them credibility
2.31pm BST2.31pm BST
14:3114:31
Pro-Brexit economist Dr Gerard Lyons has written a piece for us, arguing that UK manufacturing could thrive outside the EU.Pro-Brexit economist Dr Gerard Lyons has written a piece for us, arguing that UK manufacturing could thrive outside the EU.
Here’s a flavour:Here’s a flavour:
In the future we can craft policy to suit domestic needs, not least the possibility of an industrial policy if we wanted it.In the future we can craft policy to suit domestic needs, not least the possibility of an industrial policy if we wanted it.
We could directly help sectors. The US, never accused of not being free market, directly targets help to strategic sectors, like autos. So too could we if we wished. EU state aid rules prevent the ability to selectively help areas or sectors. Add in the need to abide by EU regional development criteria, and our hands are tied on regional policy too.We could directly help sectors. The US, never accused of not being free market, directly targets help to strategic sectors, like autos. So too could we if we wished. EU state aid rules prevent the ability to selectively help areas or sectors. Add in the need to abide by EU regional development criteria, and our hands are tied on regional policy too.
More here:More here:
My piece in The Guardian "Brexit would help UK manufacturing survive in a global market" https://t.co/AhOZi24MlCMy piece in The Guardian "Brexit would help UK manufacturing survive in a global market" https://t.co/AhOZi24MlC
2.22pm BST2.22pm BST
14:2214:22
Our economics editor, Larry Elliott, says the Bank of England will be delighted that UK inflation remained at 0.3% last month.Our economics editor, Larry Elliott, says the Bank of England will be delighted that UK inflation remained at 0.3% last month.
He explains:He explains:
For the Bank of England, lower than expected inflation is a double bonus. On the one hand, it increases the spending power of households and so boosts growth. On the other, it provides greater wriggle room before the government’s 2% inflation target comes under serious threat.For the Bank of England, lower than expected inflation is a double bonus. On the one hand, it increases the spending power of households and so boosts growth. On the other, it provides greater wriggle room before the government’s 2% inflation target comes under serious threat.
With the referendum making the outlook so uncertain, the extra leeway will be extremely welcome in Threadneedle Street.With the referendum making the outlook so uncertain, the extra leeway will be extremely welcome in Threadneedle Street.
Here’s Larry’s analysis:Here’s Larry’s analysis:
Related: Inflationary pressures building despite stable May dataRelated: Inflationary pressures building despite stable May data
1.43pm BST1.43pm BST
13:4313:43
Here comes the US retail sales figures for May....Here comes the US retail sales figures for May....
...and they’ve beaten expectations, with sales growing by 0.5% during the month....and they’ve beaten expectations, with sales growing by 0.5% during the month.
That suggests American consumers are continuing to spend, and haven’t been spooked by the latest twists in the race to succeed president Obama, or by the Brexit campaign.That suggests American consumers are continuing to spend, and haven’t been spooked by the latest twists in the race to succeed president Obama, or by the Brexit campaign.
Solid beat. Retail sales control group rises 0.4% (vs. 0.3% expected). And last month revised from 0.9% to 1.0%.Solid beat. Retail sales control group rises 0.4% (vs. 0.3% expected). And last month revised from 0.9% to 1.0%.
However.... it’s partly due to more expensive gasoline; fuel spending jumped by 2.1%, reflecting higher price at the pumpsHowever.... it’s partly due to more expensive gasoline; fuel spending jumped by 2.1%, reflecting higher price at the pumps
1.18pm BST1.18pm BST
13:1813:18
The boss of French insurance group Axa has gone public with his concerns about next week’s referendum.The boss of French insurance group Axa has gone public with his concerns about next week’s referendum.
Axa CEO Henri de Castries told a conference in Paris that the chances of Brexit are now “extremely high”. It would leave investors strugging to navigate “a true landscape of uncertainties”, he warned.Axa CEO Henri de Castries told a conference in Paris that the chances of Brexit are now “extremely high”. It would leave investors strugging to navigate “a true landscape of uncertainties”, he warned.
De Castries added that the future is uncertain, even if Britain votes to stay in the EU (via Bloomberg):De Castries added that the future is uncertain, even if Britain votes to stay in the EU (via Bloomberg):
“If they remain, the situation isn’t simple either, and this is underestimated by lots of people.”“If they remain, the situation isn’t simple either, and this is underestimated by lots of people.”
Axa CEO Warns There’s an ‘Extremely High’ Probability of #Brexit https://t.co/ap4bYvDGem via @business #eureferendumAxa CEO Warns There’s an ‘Extremely High’ Probability of #Brexit https://t.co/ap4bYvDGem via @business #eureferendum
1.08pm BST1.08pm BST
13:0813:08
Stresses in the financial markets have jumped to their highest level since late February:Stresses in the financial markets have jumped to their highest level since late February:
BofA's measure of global financial market stress is surging. https://t.co/YSjU3HOvxN via @cecileva pic.twitter.com/wdnbp4fnDTBofA's measure of global financial market stress is surging. https://t.co/YSjU3HOvxN via @cecileva pic.twitter.com/wdnbp4fnDT
12.45pm BST12.45pm BST
12:4512:45
Times City hack Simon English highlights how the mood has changed:Times City hack Simon English highlights how the mood has changed:
Just 1 in 10 bets taken in past 48 hours are backing Remain. Top stat from Sporting Index.Just 1 in 10 bets taken in past 48 hours are backing Remain. Top stat from Sporting Index.