World share and currency markets are still gyrating as the effects of Britain’s “Brexit” vote to leave the European Union reverberate across the globe.

Share prices in Britain, the USA and Europe all fell heavily, with the harshest punishment being taken by European bourses. The pound was hit once again, trading at $US1.32, its lowest point against the US dollar since 1985.

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Britain also suffered the ignominy of the loss of its AAA credit rating, as ratings agencies Standard & Poor’s and Fitch pushed its sovereign credit score lower, judging that enactment of the Brexit vote would hurt its economy.

In the UK shares were hit heavily after PM David Cameron rejected calls for a second Brexit vote. The London exchange’s FTSE index fell 2.6 per cent, or 156 points, to 5,982 points.

Europe is the biggest loser

In Europe things were even worse, with the German DAX index tumbling three per cent, or 289 points to 9,269; while in Paris, the CAC 40 also declined three per cent, or 122 points, to 3,985.

In the US, the Dow Jones Index fell 1.5 per cent, or 261 points, to 17,140 while the S&P 500 lost 1.8 per cent, or 37 points, to 2,001 hit as US banks went into a downward spiral, following the lead of their Euro counterparts.

Bank of America over six per cent and JP Morgan dumped more than 3 per cent in value.

The tech rich Nasdaq index plunged 2.4 per cent, or 114 points, to 4,594 on fears that Brexit could hurt the technology sector.

Australian shares, which ignored the gloom and actually rose on Monday, took a hit in morning trade, with the ASX 200 benchmark down 1.3 per cent to 5071.7 points.

The Australian dollar lost ground against the greenback overnight, to trade at 73.4 US cents, 55.5 British pence, 66.7 euro cents, 74.9 Japanese yen, and $NZ1.048.

British debt gets downgraded

Standard & Poor’s removed Britain’s coveted AAA credit status, downgrading it’s debt by two notches with a long-term negative outlook.

Traders on the floor of the New York Stock Exchange (NYSE). Photo: Getty.

“In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the UK,” a statement from the agency read.

“The Brexit result could lead to a deterioration of the UK’s economic performance, including its large financial services sector, which is a major contributor to employment.”

Fitch cut its credit rating by one notch from AA+ to AA, with a negative outlook.

It lowered Britain’s economic growth forecast to 0.9 per cent in 2017 and 2018 from two per cent previously.

“Fitch believes that uncertainty following the referendum outcome will induce an abrupt slowdown in short-term GDP growth,” its analysis read.

Moody’s left its UK debt rating unchanged at Aa1 but cut its rating outlook to “negative.”

Look out for a recession

Meanwhile, US investment bank Goldman Sachs predicted a “mild recession” for the UK in early 2017, following the Brexit vote.

The bank also cut its global growth forecast by 0.1 percentage point to 3.1 percent for 2016.

Goldman cut its outlook for UK GDP growth to 1.5 percent, a 0.5 percentage-point drop from its previous forecast. For 2017 the prediction is 0.2 percent, a 1.8 percent decline from its earlier forecast.

In commodities markets, spot gold rose to $US1,325 an ounce, while West Texas crude oil fell to $US46.33 a barrel as market uncertainty continued.

– with ABC.