What Just Happened?
The U.K. voted 52% to 48% to leave the European Union in a referendum that revealed deep divisions within political parties, across generations and between geographic regions of the Commonwealth.
What are the immediate effects?
Markets felt the first real impact of the results. The pound plunged as much as 11% to $1.37, the weakest level since 1985, before recovering a bit. The Stoxx Europe 600 Index sank 6.6% as of 9:50 a.m. in London, heading for its biggest decline since 2008.
Oil prices fell more than 6%, while gold, considered a safe haven in uncertain times, jumped as much as 8%. The FTSE 100 fell 8% and the DAX was off 6%.
European bank shares took a dive, which along with insurers bore the brunt of the market turmoil. Every industry group declined.
Politically, what’s next?
U.K. Prime Minister David Cameron said he will resign, effective within three months. Many see Boris Johnson, the former mayor of London, as the favorite to take over after Cameron.
<p class=”thirdparty-embed” data-view-uid=”1