It is likely that in our belief in the European Union (EU), many of us believed that Britain would not vote to exit the EU.
Perhaps in our naivety, we also believed that professional traders and governments had hedged against a YES or NON vote.
The first votes came in from New Castle and they were IN. The pound flew up like crazy.
Then the nightmare started to play out.
It is unlikely that many traders got much sleep last night and will likely have a miserable weekend.
Some 52% of British people voted to exit the EU.
Given the results of the vote, Prime Minister David Cameron has already said he is stepping down this year for a new leader for UK this October 2016.
The BREXIT referendum was totally un necessary and not required by law. The hope is that all leaders can learn from this. Sometimes our confidence may not lead us too far.
BREXIT poses many challenges for the world now. Especially the G7, G8, G20 who have come to rely on the EU as a solid European market. Even those who signed many bilateral contracts with EU partners where you can be sure Britain was in the mix.
Most currencies gained against the pound which was hammered like you have no idea. However, some currencies fell, the Canadian dollar being one of them.
Bonds in many countries are looking like they have a plague on them. Many GIC (Government Investment Certificates) also went south.
On the good side, Britain ditched chains to return to its independence outside the EU and it provides many opportunities for business and more so for African countries.
A source tells us that there will be a second referendum to really see if this thing really happened? BREXIT II!
One Briton was being Re-Tweeted today saying “I voted out but had no idea that my vote would count”. Be careful. Your vote is very powerful and might be the last one that breaks something.
Before the markets in North America closed, we took a brief look at the markets.
Dow Jones -504
London -262 (whoa! This is not half bad)
China Comp -39
South Korea -62
South Africa -1890
Hong Kong -640
New Zealand -154
Eurozone (Euro Stoxx) -277
All the markets are in the red. Imagine it is after hours trading in Europe and the volume is unreal.
Many currencies went up against the pound (GBP) but the Canadian dollar (damn!!!)
North American markets are closed now and the Shilling and Global Market report follows shortly.
Even in North America, on a Friday when after hours trading is very thin volume, tonight, it is big volume.
“THIS TOO SHALL PASS. KEEP CALM. THE SKY IS NOT FALLING AND IT IS NOT THE END OF THE WORLD”.
Martha Leah Nangalama
I have an IT and business background coupled with over 10 years of trading equities, forex, options, mutual funds and indexed funds. Did this all help today? NOPE