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Britons Back Brexit

Against all odds, the UK has voted 52% to 48% to leave the EU. The market followed to this news of Brexit with safe haven assets up and risky ones down. This was bad news for oil since it is likely to lead to a slowing of the world economy and a reduction in oil demand. Brent crumbled from $51.15 to $47.60 per barrel. Conversely, gold rose up from $1,250 to $1,350 per troy ounce.

Brexit has hit the stock market hard. The Nikkei 225 fell by 8.0%. The ASX Australia was down 3.4%. The Shanghai Composite fell by 1.7%, and the Hang Seng increased by 4.8%. Futures for the S&P500 were trading at 2002; 4.5% down on the previous trading day.

A sharp rise in the dollar against almost all of the major currencies of the world has followed the referendum results. The EUR/USD fell from 1.1420 to 1.0910. The GBP/USD fell from 1.5010 to 1.3230, thereby updating a thirty-year minimum.

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