The European markets plunged Friday, enduring their largest single session loss in nearly 8 years. Investors across the globe were stunned by the results of Thursday's U.K. referendum, after recent polls had provided hope that the nation would remain a member of the European Union.
The U.K. has decided to leave the European Union after Thursday's closely contested referendum. Those in favor of leaving the European Union garnered 51.9 percent of the vote, while 48.1 percent chose to remain.
Prime Minister David Cameron announced on Friday that he will step down in October. Cameron, who had strongly called for a "remain" vote, said the British people voted to leave the European Union and their will must be respected.
The results of the referendum sent investors in a desperate search for safe havens. The Swiss franc, gold and U.S. treasury bonds all rose sharply on concerns the U.K. could tip back into recession. Meanwhile, the pound sterling plummeted to a 31-year low.
The European Union stands ready to launch negotiations swiftly with the United Kingdom regarding the terms and conditions of its withdrawal from the European Union, the EU said in a joint statement on Friday.
President of the European Parliament Martin Schulz, President of the European Council Donald Tusk and Holder of the Presidency of the EU Council Mark Rutte met in Brussels upon the invitation of European Commission President Jean-Claude Juncker.
"We now expect the United Kingdom government to give effect to this decision of the British people as soon as possible, however painful that process may be," they said. "Any delay would unnecessarily prolong uncertainty."
"Until this process of negotiations is over, the United Kingdom remains a member of the European Union, with all the rights and obligations that derive from this," EU added.
Central banks across the world including the European Central Bank and several others in Europe and the Bank of Japan and the Federal Reserve said they were prepared for any contingency and stand ready to add extra liquidity when needed.
The Euro Stoxx 50 index of eurozone blue chip stocks decreased 8.62 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 6.43 percent.
The DAX of Germany dropped 6.82 percent and the CAC 40 of France fell 8.04 percent. The FTSE 100 of the U.K. declined 2.76 percent and the SMI of Switzerland finished lower by 3.44 percent.
In Frankfurt, Deutsche Bank plunged 13.46 percent and Commerzbank sank 12.71 percent.
Utility E.ON dropped 8.64 percent and RWE fell 9.24 percent.
ThyssenKrupp weakened by 12.39 percent and Salzgitter surrendered 5.42 percent.
Volkswagen declined 9.33 percent and Daimler forfeited 8.32 percent. BMW also closed down by 7.53 percent.
In Paris, Societe Generale plummeted 20.57 percent and BNP Paribas sank 17.40 percent. Credit Agricole also finished lower by 14 percent.
Peugeot plunged 18.17 percent and Renault dropped 13.62 percent. Car parts maker Valeo also lost 10.11 percent.
In London, housing stocks were under intense pressure. Taylor Wimpey plummeted 28.53 percent and Persimmon sank 27.55 percent. Barratt Development plunged 23.84 percent and Berkeley Group dropped 21.07 percent.
Lloyds Banking Group tumbled 21 percent and Barclays sank 17.68 percent. Royal Bank of Scotland fell 18.04 percent and Standard Chartered slipped 2.58 percent.
Germany business confidence improved unexpectedly in June, reports said citing survey results from Ifo Institute on Friday. The Ifo Business Climate indicator rose to 108.7 in June from 107.8 in May. It was forecast to fall to 107.4.
The total value of new orders received by the German construction industry decreased in April, figures from Destatis showed Friday. The seasonally, working-day and price-adjusted orders in construction fell 0.8 percent month-over-month in April.
The French economic growth improved as initially estimated in the three months ended March, latest figures from the statistical office Istat showed Friday. Gross domestic product advanced 0.6 percent quarter-on-quarter in the first quarter, confirming the second estimate, after a 0.4 percent expansion in the previous quarter.
U.K. mortgage approvals increased in May despite fears of 'Brexit', the British Bankers' Association reported Friday. The number of mortgages approved for house purchases rose unexpectedly to 42,187 in May from 39,967 in the prior month. It was forecast to fall to 37,500 in May.
New orders for big-ticket manufactured goods dropped more than expected in May. A report from the U.S. Commerce Department showed that durable goods orders fell 2.2 percent in May.
This followed a revised 3.3 percent increase in the previous month. Economists had expected a drop, but they had generally predicted a more modest retreat.
Consumer attitudes cooled slightly by the end of June compared to where they stood in the middle of the month. This according to the results of a highly influential survey of consumer sentiment released on Friday. The results were below what economists had expected.
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Market Analysis
April 10, 2026 16:21 ET Inflation data from the U.S. was the main data event this week as the conflict in the Middle East continue. The minutes of the latest Fed policy session and the survey data on the services sector also made headlines. In Europe, manufacturing orders data from Germany was in focus. Price data from China drew attention in Asia.