In a dramatic turn that polls did not predict and which markets failed to price in, the United Kingdom is on course to leave the European Union, according to the latest predictions.
The ramifications of the result, although not yet officially announced, are already reverberating across the U.K., European Union and wider political and economic establishment.
Prime Minister David Cameron is expected to make an address outside 10 Downing Street shortly as his future as leader looks uncertain. European markets are expected to open dramatically lower and EU leaders are expected to hold a crisis meeting.
Markets around the world have been roiled by the shock result:
- In Japan the Nikkei 225 was down some 8 percent
- Sterling has fallen 10 percent against the dollar and 3.83 percent against the euro.
- The prices of Brent and WTI have both dropped some 6 percent.
- The yield on the 10-year U.S. Treasury bond has fallen 15 percent.
- Dow futures now down 650 points
All eyes are now on the European markets, which are set to open in about an hour, with London’s FTSE 100 seen down 476 points at 5,862, 7.5 percent lower, while the German DAX index is called 682 points lower at 9,575, a 6.6 percent fall. France’s CAC 40 is expected to open 308 points lower at 4,158, a decline of 6.9 percent.
The totals so far have shown a wider margin of support for the leave campaign. Nonetheless, several declarations from inner-city areas in London, Northern Ireland and Scotland showed strong support for remaining in the EU.
As the result became apparent, some nationalist Scottish and Northern Irish politicians slammed the result, saying that it did not represent their electorates’ views.
For the latest market reaction, follow our World Markets Live blog
There are just under 40 more results to come in. Inner-London areas showed strong support for remaining in the EU with Wandsworth, the City of London and Islington reporting 75 percent of the votes in favor of staying. East London and neighboring Essex areas were far more ambivalent however, favoring a Brexit.
The dramatic results come quick on the heels of several opinion polls released after voting ended at 10 p.m. London time. They showed that the majority of people favored staying in the EU.
As polls closed in the U.K., a YouGov poll showed 52 percent of respondents favored staying in the economic and political bloc, while 48 percent preferred leaving. The survey of 4,772 people involved the polling firm going back to voters it had spoken to previously to see how they actually voted.
Source: CNBC
