2015–2016 stock market selloff

Stock market selloff of 2015-2016 August 2015 The 2015–2016 stock market selloff was the period of decline in the value of stock prices globally that occurred between June 2015 to June 2016. It included the 2015–2016 Chinese stock market turbulence, in which the SSE Composite Index fell 43% in just over two months between June 2015 and August 2015,https://money.cnn.com/2015/07/09/investing/china-crash-in-two-minutes/index.html China's stock market crash...in 2 minutes Charles Riley Sophia Yan CNNMoney August 27, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015042031/https://money.cnn.com/2015/07/09/investing/china-crash-in-two-minutes/index.html dead https://www.vox.com/2015/7/8/8911519/china-stock-market-charts China's stock market crash, explained in charts Timothy B. Lee Vox Media August 26, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015080232/https://www.vox.com/2015/7/8/8911519/china-stock-market-charts live which culminated in the devaluation of the yuan.https://www.bbc.co.uk/news/business-33858433 China devalues currency by 1.9% BBC News August 11, 2015 June 21, 2018 December 24, 2018 https://web.archive.org/web/20181224161147/https://www.bbc.co.uk/news/business-33858433 live https://www.theguardian.com/business/2015/aug/12/china-yuan-slips-again-after-devaluation China stuns financial markets by devaluing yuan for second day running Phillip Inman Martin Farrer Fergus Ryan The Guardian August 12, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015042226/https://www.theguardian.com/business/2015/aug/12/china-yuan-slips-again-after-devaluation live Investors sold shares globally as a result of slowing growth in the GDP of China, a fall in petroleum prices, the Greek debt default in June 2015,https://www.businessinsider.com/afp-european-stock-markets-drop-on-greece-exit-fears-2015-6 European stocks drop on Greece fears Agence France-Presse Business Insider June 29, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015114506/https://www.businessinsider.com/afp-european-stock-markets-drop-on-greece-exit-fears-2015-6 live the effects of the end of quantitative easing in the United States in October 2014,https://www.nytimes.com/2015/08/25/upshot/why-global-financial-markets-are-going-crazy.html Why the Stock Market Is So Turbulent Neil Irwin The New York Times August 24, 2015 March 1, 2017 April 20, 2017 https://web.archive.org/web/20170420220106/https://www.nytimes.com/2015/08/25/upshot/why-global-financial-markets-are-going-crazy.html live a sharp rise in bond yields in early 2016, and finally, in June 2016, the 2016 United Kingdom European Union membership referendum, in which Brexit was voted upon.https://www.usatoday.com/story/money/markets/2016/06/24/brexit-bombshell-torpedoes-global-markets/86323890/ U.S. stocks hammered as Brexit shock rocks markets Nathan Bomey Matt Krantz USA Today June 24, 2016 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015080255/https://www.usatoday.com/story/money/markets/2016/06/24/brexit-bombshell-torpedoes-global-markets/86323890/ live By July 2016, the Dow Jones Industrial Average (DJIA) recovered and achieved record highs. The FTSE 100 Index did not do so until later in 2016. Stock market performance in mid-2015 The DJIA closed at a record 18,312 on May 19, 2015,https://www.marketwatch.com/story/us-stock-futures-point-to-fresh-record-highs-for-wall-street-2015-05-19 Dow ekes out another record close Anora Mahmudova Carla Mozee Marketwatch May 19, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015114453/https://www.marketwatch.com/story/us-stock-futures-point-to-fresh-record-highs-for-wall-street-2015-05-19 live before slowly falling to a low of 17,504 and then partially recovering to its secondary closing peak of 18,102 on July 16.https://money.cnn.com/data/markets/dow/ Dow Jones values historical and today CNNMoney October 15, 2018 October 18, 2018 https://web.archive.org/web/20181018015634/https://money.cnn.com/data/markets/dow/ dead https://www.bloomberg.com/quote/INDU:IND Dow Jones Industrial Average interactive chart Bloomberg L.P. March 4, 2017 February 20, 2017 https://web.archive.org/web/20170220153200/https://www.bloomberg.com/quote/INDU:IND live The stock market slowly slid thereafter, reaching a low of 17,403. The NASDAQ Composite peaked on July 17, 2015, at 5,219. Apple Inc.'s stock peaked at $133.00 on February 20, 2015, reached $132.37 on July 20, 2015, and slid to $105 by August 21, 2015. The downturns Initial decline and bounce back in 2015 On August 18, 2015, the Dow Jones Industrial Average (DJIA) fell 33 points. On August 19, 2015, it lost 0.93% and on August 20, 2015, it lost 2.06%. A steep selloff then occurred on August 21, 2015, when the DJIA fell 531 points (3.12%), bringing the 3-day loss to 1,300 points.https://www.latimes.com/business/la-fi-0822-financial-markets-20150821-story.html Stock market suffers worst one-day drop since 2008 Shan Li Andrea Chang Paresh Dave Los Angeles Times August 21, 2015 February 20, 2020 March 3, 2020 https://web.archive.org/web/20200303184135/https://www.latimes.com/business/la-fi-0822-financial-markets-20150821-story.html live On Monday, August 24, world stock markets were down substantially, wiping out all gains made in 2015, with interlinked drops in commodities such as oil, which hit a six-year price low, copper, and most of Asian currencies, but the Japanese Yen, losing value against the United States Dollar. With the stock market plunge on Monday, an estimated ten trillion dollars had been wiped off the books on global markets since June 3.https://www.nytimes.com/2015/08/25/business/dealbook/stocks-in-asia-fall-as-china-and-emerging-economies-lose-favor.html?hp&action=click&pgtype=Homepage&module=first-column-region&region=top-news&WT.nav=top-news&_r=0 Global Stocks Tumble Further Amid Doubts About China New York Times August 24, 2015 Nathaniel Popper Neil Gough August 23, 2015 The 8% drop in China on August 24 was termed "Black Monday" by the Chinese state media.https://www.washingtonpost.com/world/world-markets-lose-ground-amid-black-monday-for-shanghai-index/2015/08/24/a1c88a48-0161-404c-a48b-6cee7d04f864_story.html?hpid=z1 markets lose ground amid 'Black Monday' for Shanghai index Washington Post August 24, 2015 October 5, 2015 https://web.archive.org/web/20151005033029/https://www.washingtonpost.com/world/world-markets-lose-ground-amid-black-monday-for-shanghai-index/2015/08/24/a1c88a48-0161-404c-a48b-6cee7d04f864_story.html?hpid=z1 live The term gained wide usage in the next 48 hours.https://www.bbc.com/news/world-asia-china-34048486 Black Monday and Tumble Tuesday: How China reacted BBC August 24, 2015 August 28, 2015 https://web.archive.org/web/20150828021908/http://www.bbc.com/news/world-asia-china-34048486 live In India, the Sensex recorded its biggest single-day fall of 1,624.51 points on August 24, ending the day down 5.94%. Indian investors registered losses worth over 7 lakh crore (7 t).Sensex crashes 1,624 points; investors lose over ₹7 lakh cr. https://www.thehindu.com/business/markets/Sensex-plunges-in-early-trade-Rupee-rate-goes-down/article60493765.ece The Hindu August 24, 2015 Chennai, India Puja Mehra Oommen A. Ninan March 10, 2020 https://web.archive.org/web/20200310055314/http://www.thehindu.com/business/markets/sensex-plunges-in-early-trade-rupee-rate-goes-down/article7574405.ece live In Europe, the main stock markets dropped at least 3% on August 24. The FTSE lost -4.4% (£78bn) but upon opening on August 25, shot up 116 points (1.97%). http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/summary/summary-indices.html?index=UKX London Stock Exchange - FTSE Values 25 August 2015 25 August 2015 London Stock Exchange Exchange London Stock August 28, 2015 https://web.archive.org/web/20150828130741/http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/summary/summary-indices.html?index=UKX livehttps://www.reuters.com/article/markets-stocks-europe-idUSL5N10W2KW20150821 European stocks suffer worst 1-day fall in nearly 4 years Reuters August 24, 2015 Alistair Smout August 21, 2015 November 25, 2018 https://web.archive.org/web/20181125013359/https://www.reuters.com/article/markets-stocks-europe-idUSL5N10W2KW20150821 live The DJIA opened 1,000 points lower on August 24, but gained nearly half of it back in the first 30 minutes. The New York Times used the term "upheaval" to describe the market situation.https://www.nytimes.com/2015/08/25/business/dealbook/daily-stock-market-activity.html?hp&action=click&pgtype=Homepage&module=span-ab-top-region&region=top-news&WT.nav=top-news Stocks Off Sharply as Market Upheaval Grows New York Times August 24, 2015 Nathaniel Popper Neil Gough August 23, 2015 August 26, 2015 https://web.archive.org/web/20150826230406/http://www.nytimes.com/2015/08/25/business/dealbook/daily-stock-market-activity.html?hp&action=click&pgtype=Homepage&module=span-ab-top-region&region=top-news&WT.nav=top-news live It remained down 588 points at the close of trading. Hedge funds, which, for the most part, had long positions on the eve of the downturn, suffered substantial losses as stocks such as Apple, Citigroup, Facebook and Amazon lost value.Alexandra Stevenson and Matthew Goldstein A Stock Market Rout in a Month That Hedge Funds Would Sooner Forget https://www.nytimes.com/2015/08/25/business/dealbook/25db-hedge.html August 25, 2015 The New York Times August 24, 2015 Hedge funds went into the sell-off bullish, with $1.5 trillion in long positions — bets that stocks will rise in price... August 26, 2015 https://web.archive.org/web/20150826025305/http://www.nytimes.com/2015/08/25/business/dealbook/25db-hedge.html live The BSE SENSEX fell 1,600 points on August 24 as the rupee fell to 66.69 per dollar.https://www.financialexpress.com/market/sensex-falls-over-1000-points-intraday-august-24-2015-reasons-why-plunge/124591/ Top reasons why BSE Sensex fell over 1,600 points today The Financial Express August 24, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015042130/https://www.financialexpress.com/market/sensex-falls-over-1000-points-intraday-august-24-2015-reasons-why-plunge/124591/ live https://timesofindia.indiatimes.com/business/india-business/Biggest-ever-fall-Sensex-crashes-over-1600-points/articleshow/48653123.cms Biggest-ever fall: Sensex crashes over 1,600 points The Times of India August 24, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015080104/https://timesofindia.indiatimes.com/business/india-business/Biggest-ever-fall-Sensex-crashes-over-1600-points/articleshow/48653123.cms live http://www.bseindia.com/sensexview/indexview_new.aspx?index_Code=16&iname=BSE30# Sensex values historical BSE India August 31, 2015 August 31, 2015 https://web.archive.org/web/20150831045815/http://www.bseindia.com/sensexview/indexview_new.aspx?index_Code=16&iname=BSE30 dead Tuesday, August 25, was another day of sharp losses on the SSE Composite Index, which dropped 7.6%, making a 40% downturn in the market since June.https://www.latimes.com/business/la-fi-global-markets-20150825-story.html U.S. stocks, after surging to start the day, end with a thud JAMES F. PELTZ Los Angeles Times August 25, 2015 February 20, 2020 September 7, 2020 https://web.archive.org/web/20200907155257/https://www.latimes.com/business/la-fi-global-markets-20150825-story.html live The two day loss for the SSE Composite Index was over 15%.https://www.businessinsider.com/chinese-markets-tank-at-the-open-2015-8 Chinese stocks got obliterated again on Tuesday David Scutt Business Insider August 24, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015114445/https://www.businessinsider.com/chinese-markets-tank-at-the-open-2015-8 live Meanwhile, Asian and European markets finished higher, and the day began with a major 440 point upsurge for the DJIA; however, the gains turned to losses, with the DJIA plunging in the final hour to lose over 200 points for the day (1.3%).https://money.cnn.com/2015/08/25/investing/stocks-markets-china-turnaround-tuesday/index.html More stock market craziness: 442-point Dow rally vanishes Matt Egan CNNMoney August 25, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015122952/https://money.cnn.com/2015/08/25/investing/stocks-markets-china-turnaround-tuesday/index.html dead https://www.washingtonpost.com/world/chinas-market-slides-again-but-rest-of-asia-enjoys-some-respite/2015/08/25/b1b8381a-4aa3-11e5-9f53-d1e3ddfd0cda_story.html U.S. stocks stage dramatic reversal, erasing rally and raising new fears The Washington Post August 25, 2015 August 25, 2015 August 25, 2015 https://web.archive.org/web/20150825151401/https://www.washingtonpost.com/world/chinas-market-slides-again-but-rest-of-asia-enjoys-some-respite/2015/08/25/b1b8381a-4aa3-11e5-9f53-d1e3ddfd0cda_story.html live https://www.bloomberg.com/news/articles/2015-08-25/s-p-500-futures-rally-3-after-worst-2-day-selloff-since-2008 China Anxiety Resurfaces to Torpedo Relief Rally in U.S. Stocks Bloomberg L.P. Anna-Louise Jackson August 25, 2015 March 4, 2017 March 5, 2017 https://web.archive.org/web/20170305074135/https://www.bloomberg.com/news/articles/2015-08-25/s-p-500-futures-rally-3-after-worst-2-day-selloff-since-2008 live On Wednesday, August 26, 2015, the SSE Composite Index swung widely and ended down another 1.3%. This was in spite of a cut in the borrowing rate in China. Late the previous day, it was announced that the Chinese legal authorities were investigating Citic Securities, the largest brokerage in the country, for possible illegal securities trading.https://www.nytimes.com/2015/08/27/business/dealbook/daily-stock-market-activity.html Steep Swings for Chinese Shares as Global Markets Turn Mixed Peter Eavis The New York Times August 26, 2015 March 1, 2017 January 18, 2017 https://web.archive.org/web/20170118102224/https://www.nytimes.com/2015/08/27/business/dealbook/daily-stock-market-activity.html live https://www.miamiherald.com/latest-news/article46708695.html 3 Chinese brokerage giants are under investigation JOE MCDONALD The Miami Herald August 26, 2015 October 15, 2018 October 15, 2018 https://web.archive.org/web/20181015042351/https://www.miamiherald.com/latest-news/article46708695.html live In addition to eight executives at the firm under scrutiny, a news reporter and members of the China Securities Regulatory Commission were reportedly taken into custody.https://www.nytimes.com/2015/08/27/business/dealbook/as-markets-flail-china-investigates-large-brokerage-firms.html As Markets Flail, China Investigates Large Brokerage Firms Neil Gough The New York Times August 26, 2015 March 1, 2017 July 3, 2017 https://web.archive.org/web/20170703071149/https://www.nytimes.com/2015/08/27/business/dealbook/as-markets-flail-china-investigates-large-brokerage-firms.html live On August 26, the U.S. markets rallied, with the three major indexes, the DJIA, NASDAQ Composite, and the S&P 500 Index all registering gains of about 4%.https://www.reuters.com/article/us-markets-stocks-usa-idUSKCN0QV12320150826 Wall Street chalks up biggest gain in four years Reuters August 26, 2015 July 5, 2021 April 2, 2019 https://web.archive.org/web/20190402111513/https://www.reuters.com/article/us-markets-stocks-usa-idUSKCN0QV12320150826 live It was the 3rd largest point gain on the list of largest daily changes in the Dow Jones Industrial Average.https://money.cnn.com/2015/08/27/investing/us-stock-market/index.html CNN: Dow rises 900 points in 2 days CNN 27 August 2015 28 August 2015 August 12, 2020 https://web.archive.org/web/20200812022432/https://money.cnn.com/2015/08/27/investing/us-stock-market/index.html dead The DJIA rose another 319 points the next day, causing the aforementioned record to be set. Subsequent volatility in 2015 On the following Tuesday, September 1, the SSE Composite Index declined 1.23%, Britain's FTSE dropped 3%, and the German DAX index declined 2.4%. In the U.S., the DJIA dropped to 16,058.35 points (2.8%) and the Nasdaq Composite fell 140.40 (2.9%). Most markets recovered the day after. On September 18, 2015, the Federal Reserve did not raise interest rates at its meeting. On that day, after a multi-week recovery in which the DJIA had recovered to 16,700, the DJIA plunged 290 points. The Nasdaq Composite fell 70 points, the FTSE 100 fell 65 points and the Nikkei 225 fell 362 points.https://www.cnbc.com/2015/09/18/stocks-open-sharply-lower-on-fed-uncertainty.html US stocks pelted, Dow off 300 points as Fed uncertanity weighs Evelyn Cheng Fred Imbert CNBC September 18, 2015 September 8, 2017 October 15, 2018 https://web.archive.org/web/20181015042101/https://www.cnbc.com/2015/09/18/stocks-open-sharply-lower-on-fed-uncertainty.html live World stock markets continued to fall in late September, with the DJIA down to 16,004 by September 29, 2015. This, coupled with other stocks (FTSE100, Hang Seng Index, Nikkei) falling the same or more, set the stage for billions to be lost. Stock market performance on January 20, 2016 widely attributed to low oil value On January 20, 2016, due to crude oil falling below $27 a barrel, the DJIA closed down 249 points after falling 565 points intraday.https://money.cnn.com/2016/01/20/investing/stocks-markets-dow-oil-china/ From horrible to just bad: Dow ends down 249 points Matt Egan CNNMoney January 21, 2016 August 2, 2020 November 8, 2020 https://web.archive.org/web/20201108121420/https://money.cnn.com/2016/01/20/investing/stocks-markets-dow-oil-china/ dead The FTSE 100 fell 3.62% in a single day and entered bear market territory.https://www.bloomberg.com/news/articles/2016-01-20/britain-s-stock-bear-market-story-in-five-charts London's FTSE 100 Enters Bear Market, in Five Charts Cecile Vannucci Bloomberg L.P. January 21, 2016 March 4, 2017 October 4, 2016 https://web.archive.org/web/20161004182001/http://www.bloomberg.com/news/articles/2016-01-20/britain-s-stock-bear-market-story-in-five-charts live Stock market performance in February 2016 as a result of Brexit vote announcement 2016 United Kingdom European Union membership referendum Aftermath of the 2016 United Kingdom European Union membership referendum In February 2016, British Prime Minister David Cameron announced that the Government was to recommend that the UK should remain in the EU and that the referendum would be held on 23 June, marking the official launch of the campaign. He also announced that Parliament would enact secondary legislation relating to the European Union Referendum Act 2015 on 22 February. With the official launch, ministers of the UK Government were then free to campaign on either side of the argument in a rare exception to Cabinet collective responsibility.https://www.bbc.co.uk/news/uk-politics-35621079 EU referendum: Cameron sets June date for UK vote BBC News February 20, 2016 17 May 2016 January 11, 2021 https://web.archive.org/web/20210111202325/https://www.bbc.com/news/uk-politics-35621079 live This announcement led British pound fell to $1.393, the lowest since 2009 and lead the uncertainty in stock markets around the world. Stock market performance in June 2016 as a result of Brexit vote thumb|Remain and Leave Brexit posters On June 14, 2016, polls showed that a vote in favor of Brexit was more likely. The FTSE 100 fell 2% and markets sold off globally.https://www.bbc.co.uk/news/business-36526008 FTSE 100 falls 2% as investors fret over Brexit Chris Johnston BBC News June 14, 2016 June 21, 2018 October 15, 2018 https://web.archive.org/web/20181015070011/https://www.bbc.co.uk/news/business-36526008 live https://www.telegraph.co.uk/business/2016/06/14/ftse-100-slides-towards-6000-and-pound-falls-as-brexit-fears-dri/ FTSE 100 loses £100bn in four days as Brexit paralyses markets and pound crumbles Tara Cunningham The Daily Telegraph June 15, 2016 April 4, 2018 February 12, 2018 https://web.archive.org/web/20180212021508/http://www.telegraph.co.uk/business/2016/06/14/ftse-100-slides-towards-6000-and-pound-falls-as-brexit-fears-dri/ live On June 20, 2016, after further polls suggested a move back towards Remain, the pound and the FTSE recovered. Global markets also recovered.https://www.bbc.co.uk/news/business-36573757 The pound has made strong gains against the dollar BBC News June 20, 2016 June 21, 2018 October 14, 2018 https://web.archive.org/web/20181014231156/https://www.bbc.co.uk/news/business-36573757 live On June 22, 2016, the day of the referendum, Sterling hit a 2016 high and the FTSE 100 climbed to a 2016 high of $1.5018 and 6338.10 respectively as a new poll suggested a win for the Remain campaign.Sterling hits 2016 high, stocks climb as UK votes on Brexit https://www.reuters.com/article/us-global-markets-idUSKCN0Z901Z Wayne Cole Reuters June 22, 2016 June 30, 2017 June 21, 2017 https://web.archive.org/web/20170621063743/http://www.reuters.com/article/us-global-markets-idUSKCN0Z901Z live Initial results from Newcastle suggested a vote for 'remain' and the value of the pound held its value. However, when the next result for Sunderland was announced, it indicated an unexpected swing to 'leave'. Subsequent results appeared to confirm this swing and sterling fell in value to $1.3777, its lowest level since 1985. However, the following Monday when the markets opened, Sterling fell to a new low of $1.32.GBP to USD exchange rate June 24, 2016 https://finance.yahoo.com/news/british-pound-us-dollar-swing-brexit-eu-referendum-025253609.html January 15, 2017 January 16, 2017 https://web.archive.org/web/20170116020937/http://finance.yahoo.com/news/british-pound-us-dollar-swing-brexit-eu-referendum-025253609.html live http://uk.reuters.com/article/uk-britain-eu-sterling-idUKKCN0Z92PQ UK markets shudder after Brexit vote, sterling hits 31-year low Jamie McGeever Patrick Graham Reuters June 24, 2016 July 4, 2016 June 27, 2016 https://web.archive.org/web/20160627190900/http://uk.reuters.com/article/uk-britain-eu-sterling-idUKKCN0Z92PQ dead When the London Stock Exchange opened on the morning of 24 June, the FTSE 100 fell from 6338.10 to 5806.13 in the first ten minutes of trading. It recovered to 6091.27 after a further 90 minutes before further recovering to 6162.97 by the end of the day's trading. When the markets reopened the Following Monday, the FTSE 100 showed a steady decline losing over 2% by mid-afternoon.FTSE 100 at the London Stock Exchange http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/summary/summary-indices.html?index=UKX August 25, 2015 August 28, 2015 https://web.archive.org/web/20150828130741/http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/summary/summary-indices.html?index=UKX live Upon opening later on the Friday after the referendum, the DJIA dropped nearly 450 points or about 2½% in less than half an hour. The Associated Press called the sudden worldwide stock market decline a stock market crash. George Soros called the referendum a Black Friday for Britain. The vote led to stock market crashes around the world.http://bigstory.ap.org/article/d4930c2180b143d685213a75e916bee8/british-vote-leaving-eu-rocks-world-financial-markets Danica Kirka Youkyung Lee Stocks crash as UK vote to quit EU shocks investors Associated Press June 24, 2016 July 4, 2016 July 3, 2016 https://web.archive.org/web/20160703190302/http://bigstory.ap.org/article/d4930c2180b143d685213a75e916bee8/british-vote-leaving-eu-rocks-world-financial-markets live Investors in worldwide stock markets lost more than the equivalent of 2 trillion United States dollars on 24 June 2016, making it the worst single day loss in history.https://www.cnbc.com/2016/06/26/brexit-cost-investors-2-trillion-the-worst-one-day-drop-ever.html Javier E. David Brexit cost investors $2 trillion, the worst one day drop ever CNBC June 26, 2016 September 8, 2017 October 19, 2017 https://web.archive.org/web/20171019025643/https://www.cnbc.com/2016/06/26/brexit-cost-investors-2-trillion-the-worst-one-day-drop-ever.html live The market losses amounted to a total of 3 trillion US dollars by June 27, 2016.https://www.cnbc.com/2016/06/27/brexit-related-losses-widen-in-relentless-sell-off.html Brexit-related losses widen to $3 trillion in relentless 2-day sell-off Javier E. David CNBC June 27, 2016 September 8, 2017 June 19, 2017 https://web.archive.org/web/20170619024335/http://www.cnbc.com/2016/06/27/brexit-related-losses-widen-in-relentless-sell-off.html live By June 29, 2016, the markets had largely recovered.https://www.bbc.com/news/business-36660133 Global stock markets rally as Brexit fears abate BBC News June 29, 2016 June 21, 2018 August 6, 2018 https://web.archive.org/web/20180806220747/https://www.bbc.com/news/business-36660133 live Britain's sovereign debt credit rating was lowered by Standard & Poor's,https://www.cnbc.com/2016/06/27/sp-cuts-united-kingdom-sovereign-credit-rating-to-aa-from-aaa.html Brexit fears drive downgrade: S&P cuts UK rating to 'AA' from 'AAA' Everett Rosenfeld CNBC June 27, 2016 September 8, 2017 October 22, 2017 https://web.archive.org/web/20171022084211/https://www.cnbc.com/2016/06/27/sp-cuts-united-kingdom-sovereign-credit-rating-to-aa-from-aaa.html live as was the European Union's.https://www.cnbc.com/2016/06/30/sp-revises-european-union-credit-rating-to-aa-from-aa.html S&P revises European Union credit rating to AA from AA+ Christine Wang CNBC June 30, 2016 September 8, 2017 November 3, 2016 https://web.archive.org/web/20161103230146/http://www.cnbc.com/2016/06/30/sp-revises-european-union-credit-rating-to-aa-from-aa.html live The euro fell by almost 4% against the United States dollar, while traditional "safe haven assets" such as gold and the Japanese Yen surged.https://www.9news.com.au/world/2016/06/24/13/03/australian-market-drops-in-reaction-to-brexit-uncertainty-as-vote-results-trickle-in World markets dive as Britain votes to leave the European Union Nine.com.au June 24, 2016 October 15, 2018 October 16, 2018 https://web.archive.org/web/20181016032757/https://www.9news.com.au/world/2016/06/24/13/03/australian-market-drops-in-reaction-to-brexit-uncertainty-as-vote-results-trickle-in live Crude oil prices fell below $48 per barrel.https://www.ft.com/content/df5cd14a-d6e2-39ee-a1c9-43c63476fff7 Brent Crude Dives Below 48 June 24, 2016 October 15, 2018 October 16, 2018 https://web.archive.org/web/20181016032756/https://www.ft.com/content/df5cd14a-d6e2-39ee-a1c9-43c63476fff7 live The French CAC 40 and German DAX initially fell by over 10% upon opening, while bank shares from the two countries fell by more. Likewise, the Spanish IBEX 35, Greek ATHEX, Dutch AEX index, Czech PX Index and Polish WIG30 all fell by eight to 15 percent. The Swiss franc, a traditional save haven asset, rose sharply, thus prompting the Swiss National Bank to intervene in the foreign exchange market to cap the rise.https://www.businessinsider.com/afp-european-stocks-in-free-fall-after-brexit-vote-2016-6 European stocks in free fall after Brexit vote Daniel Roland Agence France-Presse Business Insider June 24, 2016 October 15, 2018 October 16, 2018 https://web.archive.org/web/20181016125908/https://www.businessinsider.com/afp-european-stocks-in-free-fall-after-brexit-vote-2016-6 live It issued a statement that read: "Following the United Kingdom's vote to leave the European Union, the Swiss franc came under upward pressure. The Swiss National Bank has intervened in the foreign exchange market to stabilise the situation and will remain active in that market." Yields on European sovereign bonds spiked, with 10-year bonds in Spain and Italy rose as much as 0.40% in early trades.https://in.finance.yahoo.com/news/global-central-banks-pull-stops-092023495.html Central banks move to calm jittery markets after Brexit shock July 4, 2016 August 13, 2016 https://web.archive.org/web/20160813064709/https://in.finance.yahoo.com/news/global-central-banks-pull-stops-092023495.html live Sweden's Riksbank issued a statement that read it was "following the financial market developments closely and has a continuing dialogue with other authorities. We have contacts with the Swedish banks and other central banks. We are ready to take the necessary actions to handle financial market distortions."https://www.reuters.com/article/us-britain-eu-cenbank-sweden-idUSKCN0ZA286 Swedish central bank says ready to take necessary actions after Brexit vote Reuters June 24, 2016 June 30, 2017 August 11, 2016 https://web.archive.org/web/20160811034350/http://www.reuters.com/article/us-britain-eu-cenbank-sweden-idUSKCN0ZA286 live By mid afternoon on June 27, 2016, the sterling was at a 31-year low, having fallen 11% in two trading days and the FTSE 100 had surrendered £85 billion.https://www.telegraph.co.uk/business/2016/06/27/george-osborne-to-speak-in-attempt-to-calm-markets-following-bre/ Cunningham Tara Davidson Lauren FTSE 100 surrenders £85bn in two days, pound slides and banking stocks plunge in Brexit aftermath The Daily Telegraph June 27, 2016 April 4, 2018 August 6, 2018 https://web.archive.org/web/20180806210850/https://www.telegraph.co.uk/business/2016/06/27/george-osborne-to-speak-in-attempt-to-calm-markets-following-bre/ live By 29 June it had recovered all its losses since the markets closed on polling day.Markets shift after Carney speech https://www.bbc.co.uk/news/business-36670583 1 July 2016 BBC News BBC October 13, 2018 https://web.archive.org/web/20181013053332/https://www.bbc.co.uk/news/business-36670583 live In the Asian-Pacific region, markets also fell, with Nikkei 225 lead the Asian selloff, fell 7.92% to 14,952.02, the biggest selloff since March 2011 and the lowest level since October 2014.http://bonhamjournal.com/2016/06/25/brexit-knocks-off-rs-1-8-trn-from-indian-stock-mkt-wealth.htmlSeptember 2016 InternetArchiveBot yes Meanwhile, an unnamed official at the Bank of Korea in South Korea declined to comment on rumours it intervened in the foreign exchange market, but Vice Finance Minister Choi Sang-Mok said the government would take all efforts to minimise the impact of the result. An unnamed policymaker with knowledge of the Reserve Bank of India's (RBI) plans for related market management said that it was "prepared to deal with any volatility". Unnamed officials at SEBI said that they were in touch with the RBI on the market developments amid surveillance being beefed up to curb excess volatility and possible manipulations in various trading segments, including currency derivatives.http://ecommerce-journal.com/2016/06/brexit-will-not-affect-india-cos-in-mid-long-term-india-inc/ Archived copy ecommerce-journal.com 15 January 2022 https://web.archive.org/web/20200907175011/http://ecommerce-journal.com/2016/06/brexit-will-not-affect-india-cos-in-mid-long-term-india-inc/ 7 September 2020 dead The Australian dollar, which has traditionally been sold off in times of financial market uncertainty, fell strongly against the dollar and the yen. Other traditional markers of uncertainty, such as interbank dollar funding rates in Singapore and Hong Kong, were more steady. Hong Kong Financial Secretary John Tsang said: "Because of this matter, we have made preparation in many aspects. We have reserved sufficient liquidity and we are able to handle in different situations." The Hong Kong Monetary Authority asked banks within its jurisdiction to maintain ample cash conditions and that no unscheduled monetary liquidity injection operations had been taken. The Singapore Exchange sought to reduce volatility by raising margins on Nikkei futures traded on its exchange. The Chinese yuan fell to its weakest level against the US dollar since January 2011 while its offshore counterpart slipped to its weakest level in more than four months, despite a possibly unrelated People's Bank of China injection of 170 billion yuan into the system. The Philippines Central Bank issued a statement that read it was closely monitoring the foreign exchange market and would be prepared to act to ensure orderly transactions and smooth volatility. In the US, government bonds effectively priced in a small Federal Open Market Committee interest rate cut from a rate increase in July.http://profit.ndtv.com/news/global-economy/article-asia-central-banks-policymakers-wade-in-to-calm-markets-on-brexit-vote-1422906 Asia Central Banks, Policymakers Wade in to Calm Markets on Brexit Vote June 24, 2016 July 4, 2016 June 25, 2016 https://web.archive.org/web/20160625125350/http://profit.ndtv.com/news/global-economy/article-asia-central-banks-policymakers-wade-in-to-calm-markets-on-brexit-vote-1422906 live When American markets opened there was a dramatic fall from Canada to Brazil.June 2016 The referendum result also had an immediate negative economic impact on a number of other countries. The South African rand experienced its largest single-day decline since the Great Recession in 2008, dropping in value by over 8% against the United States dollar.http://www.iol.co.za/business/markets/currencies/rand-slumps-more-than-8-against-dollar-2038150 Rand slumps more than 8% against dollar Reuters 24 June 2016 26 June 2016 June 27, 2016 https://web.archive.org/web/20160627001118/http://www.iol.co.za/business/markets/currencies/rand-slumps-more-than-8-against-dollar-2038150 live http://qz.com/715710/brexit-could-be-terrible-for-africas-largest-economies/ Brexit will be terrible for Africa's largest economies Quartz 24 June 2016 26 June 2016 Kuo, Lily Kazeem, Yomi July 8, 2016 https://web.archive.org/web/20160708104750/http://qz.com/715710/brexit-could-be-terrible-for-africas-largest-economies/ live Other countries negatively affected include Canada, whose stock exchange fell 1.70%,http://www.cbc.ca/news/business/brexit-vote-business-impact-1.3650553 Loonie loses more than a penny, TSX sheds 239 points after Britons vote to quit EU Canadian Broadcasting Corporation 24 June 2016 26 June 2016 Evans, Pete July 8, 2016 https://web.archive.org/web/20160708090642/http://www.cbc.ca/news/business/brexit-vote-business-impact-1.3650553 live Nigeria, and Kenya. This was partly due to a general global financial shift out of currencies seen as risky and into the US dollar, and partly due to concerns over how the UK's withdrawal from the EU would impact on the economies and trade relations with close economic links to the United Kingdom. However, by September 2016 British media had reported that ignoring so-called 'Project Fear' scaremongering had rewarded those shareholders with the insight to ignore the pessimism after the FTSE250 broke all records in the months following the referendum to leave the EU.Ralph Alex Rally rewards bravery in the face of Project Fear https://www.thetimes.com/business-money/markets/article/rally-rewards-bravery-in-the-face-of-project-fear-tkdz2h95n 2 September 2016 The Times 2 October 2016 October 3, 2016 https://web.archive.org/web/20161003055510/http://www.thetimes.co.uk/article/rally-rewards-bravery-in-the-face-of-project-fear-tkdz2h95n live During a press conference on 27 June 2016, Chancellor of the Exchequer George Osborne attempted to reassure financial markets that the UK economy was not in serious trouble. This came after media reports that a survey by the Institute of Directors suggested that two-thirds of businesses believed that the outcome of the referendum would produce negative results as well as the dropping value of the sterling and the FTSE 100 which began on Friday, 24 June 2016. British businesses had also predicted that investment cuts, hiring freezes and redundancies would be necessary to cope with the results of the referendum.Wood Zoe 26 June 2016 Firms plan to quit UK as City braces for more post-Brexit losses https://www.theguardian.com/business/2016/jun/26/city-of-london-expecting-further-post-brexit-losses-when-trade-reopens The Guardian London, UK 27 June 2016 September 6, 2019 https://web.archive.org/web/20190906005234/https://www.theguardian.com/business/2016/jun/26/city-of-london-expecting-further-post-brexit-losses-when-trade-reopens live Osborne indicated that Britain was facing the future "from a position of strength" and there was no current need for an emergency Budget.https://www.bbc.com/news/business-36637732 Osborne: UK economy in a position of strength 27 June 2016 BBC News – Business BBC 27 June 2016 George Osborne has said the UK is ready to face the future "from a position of strength" and indicated there will be no immediate emergency Budget. June 11, 2019 https://web.archive.org/web/20190611131938/https://www.bbc.com/news/business-36637732 live "No-one should doubt our resolve to maintain the fiscal stability we have delivered for this country .... And to companies, large and small, I would say this: the British economy is fundamentally strong, highly competitive and we are open for business."http://www.cnn.com/2016/06/27/europe/uk-brexit-jeremy-corbyn-boris-johnson/ Brexit: UK government shifts to damage control Dewan Angela McKirdy Euan 27 June 2016 CNN Cable News Network. Turner Broadcasting System, Inc. 27 June 2016 Not since World War II has Britain faced such an uncertain future. April 17, 2019 https://web.archive.org/web/20190417125102/https://www.cnn.com/2016/06/27/europe/uk-brexit-jeremy-corbyn-boris-johnson/ live Later that afternoon, the sterling was at a 31-year low, having fallen 11% in two trading days and the FTSE 100 index had surrendered £85 billion.Cunningham Tara Davidson Lauren 27 June 2016 FTSE 100 surrenders £85bn in two days, pound slides and banking stocks plunge in Brexit aftermath https://www.telegraph.co.uk/business/2016/06/27/george-osborne-to-speak-in-attempt-to-calm-markets-following-bre/ Telegraph London, UK 27 June 2016 FTSE 100 surrenders £85bn in two days, pound slides and banking stocks plunge in Brexit aftermath August 6, 2018 https://web.archive.org/web/20180806210850/https://www.telegraph.co.uk/business/2016/06/27/george-osborne-to-speak-in-attempt-to-calm-markets-following-bre/ live Trading in Barclays Bank and Royal Bank of Scotland was briefly suspended after their prices fell sharply. At the close of trading, the domestically-focused FTSE 250 index was down approximately 14% as compared to the day before the referendum results were published (23 June 2016).https://www.economist.com/blogs/buttonwood/2016/06/markets-after-referendum Markets after the referendum – Britain faces Project Reality Buttonwood 27 June 2016 The Economist The Economist Newspaper Limited 27 June 2016 April 22, 2018 https://web.archive.org/web/20180422211235/https://economist.com/blogs/buttonwood/2016/06/markets-after-referendum live By 1 July, the FTSE 100 had risen above pre-referendum levels, indeed, risen further to a ten-month high. Taking the previous fall into account, this represented the index's largest single-week rise since 2011.1 July 2016 Post-Brexit rebound sees FTSE setting biggest weekly rise since 2011 https://finance.yahoo.com/news/post-brexit-vote-rebound-sees-071820694.html/ Reuters London, UK 3 July 2016 May 16, 2017 https://web.archive.org/web/20170516183830/http://finance.yahoo.com/news/post-brexit-vote-rebound-sees-071820694.html live On 11 July, it officially entered bull market territory, having risen by more than 20% from its February low. However, the weak pound meant that when measured in US dollars, the FTSE 100 index remained 6% below pre-Brexit levels.https://www.reuters.com/article/britain-stocks-idUSL8N19R18O FTSE turns higher after new Bank of England stimulus Atul Prakash 5 July 2016 5 July 2016 Reuters August 17, 2016 https://web.archive.org/web/20160817200900/http://www.reuters.com/article/britain-stocks-idUSL8N19R18O live The FTSE 250 Index, which contains more British companies and fewer multinationals, moved above its pre-referendum level on 27 July.https://www.telegraph.co.uk/business/2016/07/27/ftse-100-set-to-open-higher-as-markets-eye-us-fed-rates-decision/ FTSE 100 hits one-year high and FTSE 250 erases post-Brexit losses as UK economy grows by 0.6pc The Daily Telegraph 27 July 2016 27 July 2016 February 15, 2020 https://web.archive.org/web/20200215135834/https://www.telegraph.co.uk/business/2016/07/27/ftse-100-set-to-open-higher-as-markets-eye-us-fed-rates-decision/ live In the US, the S&P 500, a broader market than the Dow Jones, reached an all-time high on 11 July.https://next.ft.com/content/771c7bba-3cae-3cce-9591-9135675b4d6c S&P 500 hits record high for first time since '15 Financial Times 11 July 2016 12 July 2016 May 30, 2020 https://web.archive.org/web/20200530012110/https://www.ft.com/content/771c7bba-3cae-3cce-9591-9135675b4d6c/ live The DJIA and Nasdaq Composite, both reached an all-time high on 12 July and 8 August respectively.https://www.cnbc.com/2016/07/12/us-markets.html Dow, S&P close at record high as Brexit fears ease; energy jumps 2 pct CNBC 12 July 2016 13 July 2016 September 5, 2017 https://web.archive.org/web/20170905185545/https://www.cnbc.com/2016/07/12/us-markets.html livehttp://www.nasdaq.com/article/nasdaq-notches-another-alltime-high-20160809-01259 Nasdaq Notches Another All-Time High CNBC 8 August 2016 9 August 2016 August 26, 2016 https://web.archive.org/web/20160826212256/http://www.nasdaq.com/article/nasdaq-notches-another-alltime-high-20160809-01259 live It was expected that the weaker pound would benefit aerospace and defence firms, pharmaceutical companies, and professional services companies; the share prices of these companies were boosted after the EU referendum.Brexit: Here are the three major winners from a weak pound right now https://web.archive.org/web/20190417125635/https://www.ibtimes.co.uk/brexit-fallout-rolls-royce-glaxosmithkline-experian-are-big-winners-weak-pound-1569154 April 17, 2019 E. Shing, International Business Times, 6 Jul 2016 The pound remained low, and became the worst performing currency of the year to date against 31 other major currencies.Marianna Duarte De Aragao https://www.bloomberg.com/news/articles/2016-07-08/pound-overtakes-argentine-peso-to-become-2016-s-worst-performer Pound Overtakes Argentine Peso to Become 2016's Worst Performer Bloomberg Bloomberg News 8 July 2016 8 July 2016 September 14, 2019 https://web.archive.org/web/20190914100613/https://www.bloomberg.com/news/articles/2016-07-08/pound-overtakes-argentine-peso-to-become-2016-s-worst-performer live Reactions Several politicians have indicated strong personal opinions about the stock market selloff. Speaking on August 24, German chancellor Angela Merkel and France's President François Hollande described the world economy as "solid" and expressed confidence that the China market crash and subsequent market swings would ease up. Merkel stated "China will do everything in its power to stabilize the economic situation."https://www.wsj.com/articles/germanys-merkel-no-threat-to-global-economy-from-stock-slump-1440439711 Germany's Merkel: No Threat to Global Economy From Stock Slump The Wall Street Journal August 24, 2015 August 25, 2015 August 24, 2015 https://web.archive.org/web/20150824222826/http://www.wsj.com/articles/germanys-merkel-no-threat-to-global-economy-from-stock-slump-1440439711 live On the other hand, U.S. businessman and candidate for the Republican presidential nomination Donald Trump stated on August 24 that he felt that the stock selloff could get "messy". Trump was critical of policies that bound the Chinese and U.S. economies together.http://www.cnn.com/2015/08/24/politics/donald-trump-markets-china/ Donald Trump on market crash: 'This could get very messy!' CNN.com August 25, 2015 August 27, 2015 https://web.archive.org/web/20150827002433/http://www.cnn.com/2015/08/24/politics/donald-trump-markets-china live Also on the 24th, a fellow candidate for the Republican nomination, Chris Christie, blamed President Obama for borrowing too much money from China, saying that the U.S. and Chinese economy had become "interdependent". Christie commented figuratively that "If the Chinese get a cough, we get the flu."http://www.nj.com/politics/index.ssf/2015/08/christie_joins_trump_other_gop_hopefuls_in_blaming.html Christie slams Obama's ties to China amid stock market fall CNN.com August 24, 2015 August 25, 2015 August 28, 2015 https://web.archive.org/web/20150828024225/http://www.nj.com/politics/index.ssf/2015/08/christie_joins_trump_other_gop_hopefuls_in_blaming.html live On the day after the referendum, Bank of England Governor Mark Carney told a press conference:https://www.theguardian.com/politics/live/2016/jun/23/eu-referendum-result-live-counting-leave-remain-brain-in-europe Brexit: Nicola Sturgeon says second Scottish referendum 'highly likely' Andrew Sparrow Matthew Weaver Philip Oltermann Adam Vaughan Anushka Asthana Mark Tran Jessica Elgot Holly Watt Jennifer Rankin Henry McDonald Maev Kennedy Frances Perraudin Arthur Neslen Lisa O'Carroll Nadia Khomami Steven Morris Pamela Duncan Katie Allen Severin Carrell Rowena Mason Helena Bengtsson Caelainn Barr Simon Goodley Libby Brooks Graeme Wearden Ben Quinn Randeep Ramesh Nick Fletcher Jill Treanor Justin McCurry Richard Adams Josh Halliday David Pegg Claire Phipps Deborah Mattinson Peter Walker The Guardian 24 June 2016 December 13, 2016 December 24, 2019 https://web.archive.org/web/20191224104928/https://www.theguardian.com/politics/live/2016/jun/23/eu-referendum-result-live-counting-leave-remain-brain-in-europe liveThe capital requirements of our largest banks are now 10 times higher than before the financial crisis. The Bank of England has stress-tested those banks against scenarios far more severe than our country currently faces. As a result of these actions UK banks have raised over a £130bn of new capital and now have more than £600bn of high quality liquid assets. That substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to UK businesses and households even during challenging times.Moreover, as a backstop to support the functioning of the markets the Bank of England stands ready to provide more than £250bn of additional funds through its normal market operations. The Bank of England is also able to provide substantial liquidity in foreign currency if required. We expect institutions to draw on this funding if and when appropriate.It will take some time for the UK to establish a new relationship with Europe and the rest of the world. So some market and economic volatility can be expected as this process unfolds, but we are well prepared for this. Her Majesty's Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have remained in close contact including through the night and this morning. The Bank of England will not hesitate to take additional measure as required, as markets adjust. Nonetheless, share prices of the five largest British banks fell an average of 21% the morning after the referendum.https://www.reuters.com/article/us-britain-eu-banks-idUSKCN0Z92G8 Britain's financial sector reels after Brexit bombshell 24 June 2016 Reuters June 30, 2017 September 6, 2019 https://web.archive.org/web/20190906032944/https://www.reuters.com/article/us-britain-eu-banks-idUSKCN0Z92G8 live By the end of Friday's trading, both HSBC and Standard Chartered had fully recovered, while Lloyds, RBS Group and Barclays remained more than 10% down.Google Finance http://www.google.ca/finance?hl=en&gl=ca 24 June 2016 July 12, 2016 July 9, 2016 https://web.archive.org/web/20160709030928/http://www.google.ca/finance?hl=en&gl=ca live All of the Big Three credit rating agencies reacted negatively to the vote: Standard & Poor's cut the UK credit rating from AAA to AA, Fitch Group cut from AA+ to AA, and Moody's cut the UK's outlook to "negative".https://www.bbc.com/news/business-36644934 Ratings agencies downgrade UK credit rating after Brexit vote BBC News 27 June 2016 5 July 2016 April 17, 2019 https://web.archive.org/web/20190417112504/https://www.bbc.com/news/business-36644934 live To try to arrest the downturn and increase financial stability, on July 5, 2016, the Bank of England released £150 billion in lending by reducing the countercyclical capital buffers that banks are required to hold.https://www.theguardian.com/business/2016/jul/05/bank-of-england-releases-150bn-pounds-risks-financial-stability Bank of England releases £150bn of lending and warns on financial stability Jill Trainor 5 July 2016 5 July 2016 The Guardian May 16, 2020 https://web.archive.org/web/20200516013416/https://www.theguardian.com/business/2016/jul/05/bank-of-england-releases-150bn-pounds-risks-financial-stability live Fears of a crash in property values led investors to begin redeeming investments in property funds, prompting Standard Life to freeze trading on July 4, and Aviva followed suit the next day.https://www.theguardian.com/business/2016/jul/05/aviva-halts-trading-in-its-property-fund-brexit-standard-life Aviva halts trading in its property fund as Brexit contagion spreads The Guardian 5 July 2016 5 July 2016 Sean Farrell and Graeme Wearden July 11, 2016 https://web.archive.org/web/20160711165710/https://www.theguardian.com/business/2016/jul/05/aviva-halts-trading-in-its-property-fund-brexit-standard-life live Other investment companies including Henderson Group and M&G Investments cut the amount that investors cashing in their funds would receive. On July 12, the global investment management company BlackRock predicted the UK would experience a recession in late 2016 or early 2017 as a result of the vote to leave the EU, and that economic growth would slow down for at least five years because of a reduction in UK investment.Hazel Sheffield https://www.independent.co.uk/news/business/news/brexit-will-plunge-the-uk-into-a-recession-in-the-next-year-blackrock-says-a7134616.html Brexit will plunge the UK into a recession in the next year, BlackRock says The Independent Independent Print Limited 14 July 2016 18 July 2016 March 6, 2018 https://web.archive.org/web/20180306160831/http://www.independent.co.uk/news/business/news/brexit-will-plunge-the-uk-into-a-recession-in-the-next-year-blackrock-says-a7134616.html live On July 18, the UK-based economic forecasting group EY ITEM club suggested the country would experience a "short shallow recession" as the economy suffered "severe confidence effects on spending and business"; it also cut its economic growth forecasts for the UK from 2.6% to 0.4% in 2017, and 2.4% to 1.4% for 2018. The group's chief economic adviser, Peter Soencer, also argued there would be more long-term implications, and that the UK "may have to adjust to a permanent reduction in the size of the economy, compared to the trend that seemed possible prior to the vote".Zlata Rodionova https://www.independent.co.uk/news/business/news/uk-faces-short-recession-as-brexit-uncertainty-hits-house-prices-consumer-spending-and-jobs-ey-a7142616.html UK faces short recession as Brexit uncertainty hits house prices, consumer spending and jobs, EY predicts The Independent Independent Print Limited 18 July 2016 18 July 2016 October 27, 2017 https://web.archive.org/web/20171027034605/http://www.independent.co.uk/news/business/news/uk-faces-short-recession-as-brexit-uncertainty-hits-house-prices-consumer-spending-and-jobs-ey-a7142616.html live Senior City investor Richard Buxton also argued there would be a "mild recession".Robin De Peyer https://www.standard.co.uk/news/uk/brexit-britain-set-for-recession-as-top-city-figure-warns-leaving-eu-will-be-horrible-a3297781.html Britain 'set for recession' as Richard Buxton calls leaving EU 'horrible' London Evening Standard 17 July 2016 18 July 2016 April 17, 2019 https://web.archive.org/web/20190417123039/https://www.standard.co.uk/news/uk/brexit-britain-set-for-recession-as-top-city-figure-warns-leaving-eu-will-be-horrible-a3297781.html live On July 19, the International Monetary Fund (IMF) reduced its 2017 economic growth forecast for the UK from 2.2% to 1.3%, but still expected Britain to be the second fastest growing economy in the G7 during 2016; the IMF also reduced its forecasts for world economic growth by 0.1% to 3.1% in 2016 and 3.4% in 2017, as a result of the referendum, which it said had "thrown a spanner in the works" of global recovery.Larry Elliott https://www.theguardian.com/business/2016/jul/19/imf-cuts-uk-growth-forecasts-following-brexit-vote IMF cuts UK growth forecasts following Brexit vote The Guardian 19 July 2016 19 July 2016 August 12, 2016 https://web.archive.org/web/20160812151452/https://www.theguardian.com/business/2016/jul/19/imf-cuts-uk-growth-forecasts-following-brexit-vote live On July 20, a report released by the Bank of England said that although uncertainty had risen "markedly" since the referendum, it was yet to see evidence of a sharp economic decline as a consequence. However, around a third of contacts surveyed for the report expected there to be "some negative impact" over the following year.Lucy Meakin Jill Ward https://www.bloomberg.com/news/articles/2016-07-20/boe-sees-no-sharp-slowing-yet-even-as-brexit-boosts-uncertainty BOE Sees No Sharp Slowing Yet Even as Brexit Boosts Uncertainty Bloomberg News Bloomberg 20 July 2016 20 July 2016 April 15, 2017 https://web.archive.org/web/20170415104004/https://www.bloomberg.com/news/articles/2016-07-20/boe-sees-no-sharp-slowing-yet-even-as-brexit-boosts-uncertainty live See also 2015–2016 Chinese stock market turbulence 2016 United Kingdom European Union membership referendum Greek government-debt crisis List of stock market crashes and bear markets Stock market crashes in India References Category:2015 in economic history Category:2016 in economic history Category:2015 in international relations Category:2016 in international relations Category:2015 in the United States Category:2016 in the United States Category:Economic bubbles Category:Stock market crashes in the United States Category:History of stock exchanges in the United States