MASSACRE OF THE BANKS

Bank of England Governor Mark Carney may have sought to reassure with talk of substantial liquidity in the banking system. But that was of little comfort to markets yesterday. 

The FTSE 100 Index closed another 156.49 or 2.6 per cent down at 5982.20. Biggest casualties included Royal Bank of Scotland, which tumbled 15 per cent or 31p to 174.3p and Lloyds Banking Group, down 10.3 per cent to 51.5p.

Chronic volatility caused both shares to be temporarily suspended in early trade. Property shares were also badly hit, prompting a trading halt, on worries that the decision to leave the EU would hit the housing market.

EasyJet’s shares fell more than 21% after the airline said Brexit would contribute to a fall in revenues. Other major casualties included housebuilders Taylor Wimpey and Barratt Developments.

And it was no better on the continent. Markets in Europe also tumbled, with France’s Cac-40 and Germany’s Dax both down over 2%. Bargain hunters will move in. But no-one’s being knocked down in the rush.

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