How great is Europe contagion risk following Brexit result?

European equities were hammered in the wake of the referendum result, with the French CAC down 8% after the first trading day, while Germany's DAX closed 6% lower.

These falls far outpaced the FTSE 100's 3.2% loss, as investors worried about the impact of a UK exit on the EU's future. Among the worst-hit stocks in Europe were banks, many of which were already under pressure due to concerns over rising debt levels on their balance sheets. For example, Italy's Intesa Sanpaolo suffered double-digit losses of 23% on 24 June alone. European stocks managed to recoup some losses as the week progressed, but many managers fear this is a short-term reprieve and volatility is set to increase further in 2016 as a result of a Brexit 'contagion effect'. ...