No Brexit-style shock to the post-election markets

2016 has been a year for political upsets and shocks. No more so is this true than in the United Kingdom and the United States. The UK and Europe woke up on the 24th of June to the unexpected news that the people of the UK had voted to leave the European Union. The shockwaves that emanated from the result were immediately felt by the markets. The FTSE 100 closed 3.2 percent down, and the German DAX 6.8. Politically, it is arguable that Donald Trump winning the U.S. election was even more significant and shocking ("Brexit-plus-plus-plus"). Nevertheless, the reaction was largely positive, with the Dow Jones gaining 1.4 percent and most others following suit. Of course, the long-term financial effect of both events still remains to be seen.