The Brexit crash begins

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Massive moves across markets as it becomes obvious that Brexit has won the UK referendum:

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US dollar ripping:

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Yen too, euro not happy:

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Chinese yuan crashed to new five year lows:

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Developed market commodity currencies crunched:

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Oil hit:

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Gold surging despite the US dollar:

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Pound pounded:

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Base metals yawn:

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Huge bond bid:

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Shares monstered:

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Short term panic then a very big problem for Europe and the world as the viability of the euro takes center stage given the result puts a rocket under secession movements across the Continent meaning:

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  • US dollar bull market;
  • emerging market growth struggles;
  • falling commodity prices, and
  • more deflation.

Dunno if markets will price it right away or grind it out but it ain’t pretty.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.