Britain votes to leave EU: what the global market reaction?

June 24, 2016
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Britain has voted to leave the European Union. That’s the main news of Friday. From now, the global market will react more fast and unpredictable than ever. During last week pound cost $1.35 — as low as never from 1985. So, the changes started, and they’re irreversible, say financial experts from EU and the world.

The Brexit referendum results showed a stunning decision of Britons to leave the EU. According to the latest data, nearly complete results were 51.8/48.2 percent split for leaving. And the reaction of global financial markets will be fast and understandable, say experts. Since 2008 crisis, it will be the next economical shock.

Last week the pound suffered its biggest one-day fall in history, plunging more than 10 percent against the dollar to hit levels last seen in 1985 ($1.35 only). According to the economists’ opinion, the vote will initiate at least two years of messy divorce proceedings with the EU and cast doubt on London’s future as a global financial capital.

Moreover, in political life is going to be a lot of changes too. The future of Prime Minister David Cameron was doubtful at best. Many people believe that he just gambled the fate of the nation with his appeal to stay in the EU.

The Bank of England gave no immediate comments on referendum results. By 5.41 a.m. (0441 GMT), 93 percent of the vote had been counted, making Leave’s lead impossible to reverse.

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