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Title: Why stock markets crushed down when Britian leave European Union?
Why stock markets crushed down when Britian leave European Union?
The EU had free trade within it and trade deals established with the other countries of the world. By leaving the EU, Britain is leaving those deals. It will have to re-negotiate trade with everyone. And while of course it will do so, right now nobody knows what the terms will be. So international companies are unwilling to set up large operations in Britain or make plans with British companies. So the British stock market is down because their profits are going to be much lower, and markets in countries like the US that do a lot of business in the UK are also down.
Now, what comes next? A lot of other European countries are considering leaving the EU, and this will push them to do so. The whole EU might collapse. So things are even more uncertain over there.
Finally, Japan. Japan's economy was already in trouble and just needed a push to come crashing down.
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