The world will not be the same any more after Great Britain made a historical decision to leave European Union. Strong hopes that British voters will opt for staying in the union remained until polling stations were closed, with British pound even probing above 1.50 barrier, driven by prevailing positive sentiment, on polls that were showing numbers turned in favor of Stay camp.

Results of UK referendum showed the win of Leave camp by 52% – 48% split that made the biggest blow to the European project of greater unity since World War Two.

The pound fell more than 10% against the dollar and hit levels last seen in 1985, after results showed final decision of British voters. This presents the pound’s biggest one-day fall in the history, even bigger than Black Wednesday in 1992.

World’s fifth largest economy was shook by decision to leave EU, with rising fears for investments and threatening London’s role as global financial capital.
The consequences of Brexit decision are still to come, with Britain’s Prime Minister David Cameron being the first ‘victim’ after the pound, as he announced his resignation from PM position by October.

European shares lost more than 8%, heading towards the biggest one-day fall in the history. Banking sector also suffered, as billions of dollars were wiped from banks’ market value, with leading banks, such as Barclays, RBS and Lloyds, being among the biggest fallers.

European Union was also hit by British decision, as the union lost one of the biggest members and is expected to lose around a sixth of its economic output.
Further signs of Brexit impact are expected to signal weakening of the UK’s economy, which would likely enter recession, with Bank of England expected to cut rates and various sectors also expected to be hit.
European politicians reacted with shock, however, supportive tones were heard from populist leaders in France and the Netherlands, who demanded their own referendum to leave.
Top world’s leaders, including Obama, Chinese President Xi Jinping, German Chancellor Angela Merkel and NATO, were urging Remain vote, saying that Britain would be stronger and more influential in the EU than outside.
The referendum decision will initiate divorce proceedings with the EU, which are expected to extend into next at least two years, with successor of PM Cameron, expected to formally start the exit process.

 , Market Analysis