Investing.com - European stocks plunged on Friday, after the U.K. surprised markets by deciding to leave the European Union in a historic referendum and British Prime Minister David Cameron said he will be stepping down.
During European morning trade, the EURO STOXX 50 dove 9.97%, France’s CAC 40 sank 9.49%, while Germany’s DAX 30 plunged 7.73%.
European equities were hit after the U.K. voted by a substantial margin to leave the EU in a landmark referendum, with the Leave side winning 52% of the vote, against 48% to remain.
The Bank of England said Friday it would take all necessary steps to secure monetary and financial stability after the shock Brexit result.
"The Bank of England is monitoring developments closely," it said in a statement.
"It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks."
Shortly after the Brexit news, David Cameron said he will be standing down as UK Prime Minister.
Cameron confirmed he will honour Britain's historic vote to leave the European Union and that he will resign before his Conservative Party's conference in October.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) dove 24.93% and 16.58%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 15.55% and 16.81%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) advanced 0.63% and 0.89% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) rose 0.27% and 0.28%.
Energy stocks were also sharply lower as the Brexit news sent oil prices down over 4%.
French oil and gas major Total SA (PA:TOTF) dove 8.31% and Italy’s ENI (MI:ENI) plunged 8.71%, while Norwegian rival Statoil (OL:STL) tumbled 4.41% and Russia’s Gazprom (MCX:GAZP) plummeted 3.12%.
Elsewhere, Volkswagen (DE:VOWG_p) saw shares singk13.12% after the automaker agreed to pay US vehicle owners about $5,000 apiece to settle claims from its emissions cheating scandal. The company is expected to pay a total of more than $10.2 billion for the repayments and other fines.
In London, FTSE 100 plummeted 7.18%, as U.K. lenders tracked their European counterparts sharply lower.
Shares in HSBC Holdings (LON:HSBA) lost 4.94% and Lloyds Banking (LON:LLOY) dove 23.35%, while the Royal Bank of Scotland (LON:RBS) and Barlcays plunged 22.99% and 25.19%.
Oil and gas major BP (LON:BP) was also on the downside, with shares plummeted 5.63%, while rival Royal Dutch Shell (LON:RDSa) retreated 4.91%.
Meanwhile, mining stocks were mixed on the commodity-heavy index. Glencore (LON:GLEN) dove 10.28% and Rio Tinto (LON:RIO) lost 4.81%, while Fresnillo (LON:FRES) soared 18.89% and Randgold (LON:RRS) ressources skyrocketed 27.73% on sharply higher gold prices.
In the U.S., equity markets pointed to a sharply lower open. The Dow Jones Industrial Average futures pointed to a 2.77% plunge, S&P 500 futures a 3.72% loss, while the Nasdaq 100 futures indicated a 3.84% dive.