24 june 2016 economic news
Here are some of the top economic news stories from June 24, 2016:
- Brexit Vote: The United Kingdom voted to leave the European Union (EU) in a historic referendum, sending shockwaves through global financial markets. The "Leave" campaign won with 51.9% of the vote, while the "Remain" campaign received 48.1%.
- Stock Market Turmoil: Global stock markets plummeted in response to the Brexit vote, with the Dow Jones Industrial Average falling over 800 points, or 4.6%, to close at 17,400. The S&P 500 index fell 3.6% to 2,076, while the Nasdaq composite dropped 3.4% to 4,736.
- Pound Plunges: The British pound (GBP) fell to a 31-year low against the US dollar, dropping to $1.32. The currency's value has been volatile since the Brexit vote, with some analysts predicting a further decline.
- Interest Rates: The Bank of England (BoE) cut its main interest rate to 0.5% from 0.75% to help stabilize the economy and mitigate the impact of the Brexit vote. The BoE also announced a series of emergency measures to inject liquidity into the financial system.
- Global Economic Impact: The International Monetary Fund (IMF) warned that the Brexit vote could lead to a global economic slowdown, with the UK's departure from the EU potentially reducing economic growth by 1.4% in the short term.
- Currency Markets: The euro fell to a 22-month low against the US dollar, while the Japanese yen strengthened against the dollar. The Swiss franc also rose against the dollar, as investors sought safe-haven currencies.
- Oil Prices: Oil prices fell sharply in response to the Brexit vote, with Brent crude dropping 4.5% to $48.50 per barrel. The decline was attributed to concerns over the impact of the Brexit vote on global economic growth and energy demand.
- US Economic Data: The US Commerce Department reported that the country's gross domestic product (GDP) grew at an annual rate of 1.1% in the first quarter of 2016, down from 1.9% in the previous quarter.
- Job Market: The US Labor Department reported that the number of Americans filing for unemployment benefits fell to 268,000 in the week ending June 18, down from 277,000 in the previous week.
- Federal Reserve: The Federal Reserve kept interest rates unchanged at its June meeting, citing concerns over the impact of the Brexit vote on the global economy. The Fed also signaled that it may not raise interest rates again until 2017.