European shares plunged lower in the opening

• European shares plunged lower in the opening with major indices losing approximately 10%. Part of the losses were being erased later in the session, although most indices trade still 6‐8% down. US Equities opened with losses of 2‐3%. The Nasdaq underperforms (‐3.5%).

• UK Prime Minister Cameron announces his resignation in the wake of the referendum and said a new leader should be in place by October to lead negotiations with the European Union.

• G7 Finance Ministers vowed to continue to consult closely on market moves and financial stability and cooperate as appropriate, recognising that excess volatility and disorderly moves in exchange rates can harm economic and financial stability after Britain voted to exit the European Union.

• The Swiss central bank said it had intervened in the currency market to weaken the Swiss franc in the wake of Britain's vote to leave the EU and added it will remain active in that market. EUR/CHF trades currently around 1.08, after having dropped to 1.062 early this morning.

• After the Bank of England, also the ECB said it stands ready to provide additional liquidity, if needed, in euro and foreign currencies. The Fed also said it is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets. People's Bank of China pledged to keep the yuan basically stable and said it would maintain ample liquidity.

• After S&P, also Moody's and Fitch warned that Brexit is a credit negative for the UK. Fitch said Brexit is moderately negative for the UK sovereign and added that they will review the sovereign rating shortly. Moody's said the lasting credit impact of the vote to leave will depend on the nature of the UK's ties with the EU.

• Sunday, Spain will hold general elections.

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