Article 1J7RE Market reaction to Britain's leave vote: it could have been worse

Market reaction to Britain's leave vote: it could have been worse

by
Nils Pratley
from Economics | The Guardian on (#1J7RE)

Do not read too much into the City's initial response, divorce negotiations with the EU are now the main event

The FTSE 100 index is down about 300 points, or 4.5%, at 10am. Sterling is 7% weaker against the dollar. And 10-year gilt yields have fallen from 1.3% to close to 1%, the biggest one-day drop since 2009. These are big moves but - versus expectations - you'd call it a par score. Share prices and the pound had rallied strongly in the days before on the expectation of a vote for remain. A victory for leave - a 10% chance, according to the bookmakers, as the polls closed - couldn't fail to provoke a strong market reaction.

Related: Bank of England promises 250bn to calm markets after Brexit vote - live updates

Related: FTSE 100 and sterling plunge on Brexit vote

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