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On Thursday the United Kingdom voted to leave the European Union, and this historic turn shook the world and global markets. Here we take account of the earliest effects on financial markets which seem to confirm experts’ fears that Brexit would be the next big spike. The most notable of them, is of course, the effect on the British pound: in the wake of Brexit, it fell more than 10% to 1.3230, its weakest value since 1985. This is an epic drop, especially for a developed-market currency.
Here are the other most notable moves in global financial markets:
- The Euro slumped around 4% to 1.0945 per dollar;
- Yen jumps 3.7 % to 102.35 per dollar, after surging past 100 for first time since 2013;
- FTSE 100 Index futures tumble 9%;
- FTSE 250 drops 11.4%, worst decline ever;
- S&P 500 Index futures dropped as much as 5.1 percent (the maximum allowed);
- Gold reaches its highest since March 2014 rallies to $1,358.54 an ounce, up by more than 8%;
- New York crude oil retreats 5.1% to $47.56 a barrel;
- Bitcoin is up 8% to $675, just a day after dropping to a weekly low of $550.
The volatility across the markets is massive, and analysts expect months of economic and political turmoil after the most complex divorce in EU history has begun. UK`s prime minister David Cameron, who urged a Bremain vote, has already indicated that he will resign by October. There are many Brexit-related uncertainties and complications yet to come, which will also reflect against financial markets in the long-term, so we will continue to cover the Brexit aftermath.