Turbulence and Uncertainty for the Market After ‘Brexit’ [View all]

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LONDON — No one really knows what happens now. The collective imagination leads to dark places.

The world map has been redrawn with the rules of commerce across Europe, the largest marketplace on earth. Britain’s vote on Thursday to leave the European Union has set in motion an unprecedented and unpredictable process that threatens turbulence and potential crisis — for Britain, for Europe and for the global economy.

Of most immediate consequence, Britain’s vote to leave Europe sent global markets on a wild descent. Investors gaped at this major refashioning of the global landscape and decided it looked perilous — or at least so pockmarked with uncertainty that they preferred to pull their money out of riskier corners like stock markets.

The British pound plummeted some 9 percent, reaching levels not seen since 1985 — well below the value at the worst of the 2008 financial crisis. The euro dropped nearly 3 percent.

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http://www.nytimes.com/2016/06/25/business/international/brexit-financial-economic-impact-leave.html?smid=tw-nytimes&smtyp=cur&_r=0