The Brits have cast their votes: in favor of Britain's exit from the European Union (EU), leading 52 to 48 percent on Thursday's final tally.
17,410,742 members of the general UK population pushed for Brexit while 16,141,241 votes, mostly hailing from Northern Ireland, were cast to remain in the EU.
Initial findings and unofficial polls concluded that majority of the populace would vote for the United Kingdom's stay in the 28-bloc union but results proved otherwise, sending shocks to the already muddled global economy. Stock markets and oil prices are continually suffering major losses in light of recent events.
"...Britain's unprecedented vote to leave the European Union shocked investors and dragged the region, the world's largest economic bloc, into a new era of uncertainty," NBC News writes.
The UK pound lost nearly 11 percent in only six hours, bringing it to $1.3917 in the currency market to mark the greatest loss it has undergone in over three decades. The FTSE 100 dropped a drastic 8 percent; British banks lost about 30 percent of its opening shares, while the benchmark for international oil prices, London Brent, decreased 4.1 percent or $2.07, now $48.85 per barrel.
In global markets, the Japanese yen rose 3 percent against the U.S. dollar. Reports speculate that investments have been shifted to the currency despite its 8.3 percent decrease in Nikkei stocks. South Korea's Kospi suffered a 3.1 percent decrease, Australia's S&P/ASX 200 fell 3.2 percent, Hong Kong's Hang Seng Index decreased 4.4 percent, U.S. Dow futures declined 3.9 percent and S&P futures sank 5.1 percent.
Overall, the general trend in stock markets is decreasing due to unfavorable and inconceivable scenarios in the industry. Investors are getting precautious and causing major shifts in the economy as unforeseeable circumstances have yet to be determined after Britain's exit polls.
"All eyes will now be on central banks around the world to see how they respond to these market developments, particularly the Bank of England and the Bank of Japan," says senior market analyst, Craig Erlam.
The Bank of England is likely losing its current status in the European continent as the central hub for banking operations — after all, its territory will now become independent — and is expected to raise interest rates to counter the plummeting value of the British pound. Credit allocations will be tightened and borrowing costs increased for "riskier locales," specifically in "heavily indebted" nations according to The New York Times.
Meanwhile, the Brexit referendum's results do not immediately grant independence to the UK.
Instead, certain procedures have now been put into motion to act accordingly and ultimately, grant the UK's independence. To delay or, perhaps, ignore the wishes of the people is a possible decision for appointed officials, though, the BBC notes that such attempts would be "political suicide."
Article 50 of the European Union Treaty will be enacted by the Prime Minister of the UK once preparations are in order.
Article 50 dictates the necessary steps for a withdrawing nation to formally claim its decision to leave the union. A two-year window will then open for affected nations to come to certain agreements regarding economic and political policies that could either be beneficial or restrictive for the withdrawing country.
Reports have speculated that Brexit will hurt relationships between the UK and EU and thus, result in unfavorable circumstances for the former nation. Recent events have also seen the British Prime Minister, David Cameron, stepping down from his post which could further extend the process for UK's independence.
Now that the referendum has officially ended, a number of long-expected concerns are starting to gain more ground: companies that established its headquarters in the UK might have major restructuring to do in the future to maintain connections with the rest of the EU; migrating from the EU to the UK (and likewise) might now be restricted due to territorial boundaries; and lastly, Britain's breakup from the union might set the necessary precedent for other "Euroskeptic" nations to leave as well.
Initial effects of the movement are already occurring, though, not much can be said of future scenarios. The only certain conclusion that reports have arrived to is the uncertainty of rougher and turbulent times ahead.
Photo: Rian Saunders | Flickr
