LONDON — Fears over the U.K.’s decision to leave the European Union continue to jolt world stock markets with Sterling falling to a new 31-year low on Wednesday.
London’s FTSE 100 share index was down 1.6% in afternoon trade while U.S. markets on Wall Street opened lower. The pound fell to $1.2798, its lowest since 1985, before rebounding slightly.
Shares in pan-European giant Sky were down by 1.77% to 834p while French media conglomerate, Vivendi, which owns Universal Music Group, Canal Plus and Studiocanal, was down 1.66% when the European markets closed.
German entertainment giant ProSiebenSat saw shares fall by 1.22% to €35.93 per share while Mediaset was up slightly by 0.32% to €9.61 per share.
Meanwhile, ITV, which suffered a 21% share price fall the day after the referendum wiping almost £2.5 billion ($3.3 billion) from its stock, saw its stock rise slightly on Wednesday by 0.77% to 170.2p.
On Tuesday, the Bank of England governor Mark Carney said the U.K. “has entered a period of uncertainty and significant economic adjustment” after the Brexit vote and suggested that the number of vulnerable households could increase as a result while indicating a potential tightening of credit conditions. He warned that the risks of Brexit were “crystallizing.”
A number of property funds, including Aviva and M&G, have suspended their property funds in the territory, leaving $19.4 billion frozen, marking the biggest seizing of investment funds since the 2008 financial crisis.