The UK’s shocking decision to leave the European Union has thrown financial markets into chaos.
Both main British broadcasters, ITV and the BBC, called the vote for the “Leave” camp at 4:40 AM local time. The unexpected turn of events walloped the British pound, which plummeted by more than 10% against the dollar—by far its biggest intraday decline in history.
“This is what happens when markets think they’ve got it right, and they haven’t,” said the Guardian’s Dan Milmo.
He warned that Friday’s trading could be on par with Black Wednesday in 1992—when the UK was forced to abandon its currency controls and devalue the pound.
The FTSE 100 index of the biggest UK stocks is expected to open at least 6% down from Thursday’s close, erasing tens of billions of pounds in value.
George Soros, who made an estimated £1 billion shorting the pound back then, has warned that a vote for Brexit will have catastrophic consequences for the UK and global economy.