On Friday, 24th of June; the British people made a historic decision to leave the European Union by 52% voting to leave the economic-political union, while 48% cast their vote to remain, according to the UK’s Electoral Commission.
The move ended the 43-year old union between the Kingdom and the common bloc and had an immediate effect on the markets.
The UK Prime Minister David Cameron, who had led the campaign to remain in the EU, announced his resignation at a press conference following the Brexit referendum. The market reacted to the UK’s vote to exit the EU and the prospect of a possible recession, as shares heavily declined and the British pound plunged to a 31-year low. The FTSE 100 fell by more than 8% within the early trading hours with more than £120bn wiped off the value of its constituent companies.
Stocks in the European region also followed the falling trend, with the German DAX 30 Index declining 6.87% to trade at 9,552.28, while the French CAC 40 Index fell by 7.90% to 4,113.13 and the European Euro Stoxx 50 Index edged 8.57% lower to 2,774.51. The heavy losses were calmed by comments from the Bank of England’s governor, Mark Carney, “The Bank will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward.”
Meanwhile in Scotland, the Prime Minister Nicola Sturgeon hinted that Scotland is considering another independence referendum to leave the UK after supporting to remain in the EU.
With HY Markets, you can monitor your trades closely as rapid developments circulating the EU Referendum results continue to have an impact on the markets.