FTSE drops as Brexit fears take hold

UK-Currency-Money-Coins-700.jpgThe FTSE index has dropped 6 per cent in the past four days as pollsters showed a vote to Brexit has become more likely.

The FTSE 100 ended the day down 2 per cent yesterday, at 5,923, the lowest point for the index since February.

Yesterday marked the fourth day of losses for the index as fears over a Leave vote for the upcoming EU referendum took hold.

A YouGov poll for the Times now has the Leave vote seven points ahead of Remain, while ICM polls for the Guardian has Leave six points in front, and another poll in the Telegraph has Leave one point ahead.

“Panic appears to be gripping markets as the headlines fill up with references to a possible Brexit, with the Sun’s declaration for Brexit emblematic of the worry that the Remain campaign has lost a crucial segment of the population,” says Chris Beauchamp, senior market analyst at IG.

The pound also dropped lower against the dollar yesterday, continuing an eight-week low for the currency. It fell 1.2 per cent to below $1.41 as investors sought safety in bonds and gold.