2016-06-24 11:55:35

Referendum in the UK was held and the country is leaving the EU.

According to the official results, 51.9% of votes were for the exit from the EU, 48.1% voted for staying in the Union. Final results of referendum about UK’s membership in the EU: 17 410 742 people were for leaving the Union, and 16 141 241 votes were for staying in the EU.

43-year period of political and economic integration of the UK with the rest of Europe has terminated. Now, there will be a two-year period, during which the terms of exit will be agreed, which means that technically, the UK will still will remain a member of the European Union for some time, and the process of separation will encounter a great many difficulties, both, political, technical and economic.

According to economists and analysts, the exit of the third economy of the EU from the Union will disrupt the established balance of power in the European Union, and will create a precedent for termination of the membership by other countries, members of the EU.

After announcement of the referendum’s results, the world stock markets have declined. Gold prices soared up to $ 100 per ounce, the Yen has sharply strengthened and the USD went up, especially in pairs with Euro and Pound. Oil prices fell by more than $3 per barrel.

Japanese Nikkei Stock Average fell by 7.9% to 14952.02 points at the end of Asian trading session, which was the strongest decline in points since April 2000 and in percent since March 2011. At the end of Asian trading session Chinese Shenzhen Composite index declined by 0.8%, ChiNext fell 0.5%, Shanghai Composite by 1.3%. On Friday, Chineses Central Bank supported the Yuan by carrying out currency intervention after the pair USDr/Yuan reached the level of 6.6140 on Friday, which was the highest value level mid-January 2011. The Bank of England can lower interest rate from the current record lows of 0.50% to zero or lower, and this may happen in the near future

ECB can continue monetary policy easing and reduce deposit rates by 10 basis points. The Bank can also extend asset purchase program until 2018 or longer.

Today, the pair GBP/USD declined to 1.3230, damping from 1.5000. FTSE 100 fell by 11% since the opening of today's trading day and by 1.4% after the opening of trading on the London stock exchange.

Although the index FTSE100 tries to consolidate at the achieved lows, pressure on the British stock market and the stock index will continue for a long time, and the decline will apparently continue.

FTSE100: British people voted to the exit from the EU  Fundamental analysis as of 24.06.2016