The ASX has dropped almost 200 points in response to the Brexit news. Source ASX.
The ASX has dropped almost 200 points in response to the Brexit news. Source ASX.

Brexit uncertainty wipes $50 billion off ASX

THE Australian Stock Exchange as plummeted amidst fears Britain's exit from the European Union will cause the global economy to go into meltdown. 

The British Pound has collapsed to its lowest point since 1985 and markets across the world have witnessed a wholesale run to safety as investors seek safe-haven from the widespread uncertainty. 

In Australia the ASX has dropped 167.5 points, or 3.3%, in the course of the day with - opening at 5300 and ending at 5100 - a drop that equates to about $50 billion worth of value being wiped.

"Our financial markets, not just stocks but also the dollar and bond markets, are forward scouts for this particular event," Patersons Securities' economist and market strategist Tony Farnham told News Corp.

"So our markets are reacting to the ebb and flow on whether you believe they are going to 'leave' or 'remain' in the EU. International markets would be showing concern about the uncertain economic ramifications were the UK to vote to leave the EU."

Meanwhile other experts said gold was quickly becoming a very valuable commodity as purchasing the precious metal is seen as a safe move in uncertain times. 

"Anyone that has got a bit of gold... gold is a bit of a safe haven," Morgans' stockbroking client adviser Steve Greentree told News Corp.

"(There's a) few little pockets of resistance but predominantly it is coming off. But anyone that's got a bit of US dollar exposure or North American exposure might outperform a little bit."


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