Banks and housebuilders expected to fall, CMA reports on energy probe

Stocks to watch

No FTSE 350 companies released any statements at 0700 BST via the regulatory news service (RNS), though the competition regulator reported on the conclusion of its energy market investigation. The Competition and Markets Authority (CMA) set out what it said were a more than 30 measures "to modernise the market for the benefit of customers" after it found that customers have been paying £1.4bn a year more than they would in a fully competitive market.

Analysts had a few suggestions of stocks to watch when markets open. Following their one-week rally on hopes a Remain vote might win, analysts at Accendo Markets, predicted the hardest hit stocks to be financials such as banks and insurance, followed by housebuilders, with commodities related-names following close behind. Bernstein's banking analysts expected shares in Lloyds Banking Group and Barclays to fall more than 20%, with Royal Bank of Scotland falling a similar amount

In its latest global equity strategy note, Credit Suisse said it would cut its FTSE 100 year-end target by 6% and its Euro Stoxx 50 target by 12% in the event of a Brexit. The Swiss bank said that in a full Brexit scenario – where Article 50 of the Treaty on European Union is invoked almost immediately – its FTSE 100 year-end target would drop to 6,200 from 6,600, while its S&P 500 target would decline to 2,000 from 2,150 and its Euro Stoxx 50 target would slip to 2,950 from 3,350.

Newspaper round up

As Europe wakes up to the news that Britain has voted to leave the EU, reactions from the UK’s leading business groups have started to pour in. The Institute of Directors admits that the referendum result may not have been the one most of its members wanted but now that the UK has decided, it is “imperative” that political leaders manage the transition out of Europe “as smoothly as possible”. – Financial Times

The UK’s central bank has said it is working with other authorities to do everything necessary to ensure financial stability. In a statement the Bank said: “The Bank of England is monitoring developments closely. It has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks. The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability.” –Financial Times

The price of gold surged in the early hours of the morning as it became clearer that the British public had voted to leave the European Union . The precious metal rallied as much as 8.1pc to nearly $1,360 an ounce, its highest since March 2014, after dipping as low as $1,255 an ounce after voting closed last night. – Telegraph

11 September 2001. 15 September 2008. To that list of huge stock market plunges, it looks as if historians will soon add 24 June 2016: the day the markets went into freefall when Britain voted to leave the European Union. The City wasn’t even waiting for the final result to be announced. It was selling sterling long before the sun came up, driving the pound down to levels against the dollar not seen for 30 years. – Guardian

US close

Markets in the US closed higher on Thursday, with sterling reaching close to year-to-date highs against the greenback as sentiment swayed towards expectations that the UK will vote to remain in the European Union.

The Dow Jones Industrial Average finished up 1.29% at 18,011.07, the S&P 500 added 1.34% to 2,113.32 and the Nasdaq ended the day up 1.59% at 4,910.04.

“I think the market’s already voted. It looks like they’re looking for the stay vote to prevail,” Darhan Capital CEO Adam Sarhan said.

“This could be a classic case of 'buy the rumor, sell the fact.’”