UK referendum results
On Thursday, June 23, 2016, the UK conducted a referendum to decide whether it would (EWU) stay in or leave the European Union (FEZ), and on Friday, June 24, the results were announced: the “leave” campaign won.
UK citizens voted to leave the European Union (HEDJ) (VGK), with 51.8% voting in favor of leaving (EZU), and 48.2% voting to remain. After the announcement of the referendum date, volatility increased in global markets (ACWI). On Friday, June 24, 2016, the FTSE 100 Index fell by 7.5% after the opening of the market as the Britain made its exit from the European Union.
Before the referendum
The UK is now the first country to exit the EU in a historical move amid continued challenges in the global economy (ACWI) (VTI). According to a YouGov opinion poll in September 2015, about 40% of UK citizens wanted to leave the European Union, while 38% of British citizens wanted to stay in the EU. Of course, now this percentage has changed.
In this series, we’ll discuss the global market reaction to the UK’s “Brexit” decision, how the currency market has fluctuated as a result, and which sectors will likely be affected most.
Let’s start with the immediate market reaction to the UK’s vote on June 24, 2016.