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RARELY can the market mood have changed so quickly. As the EU referendum polls closed at 10pm, investors were confident of a Remain win. The opinion polls released during the day, and at the close, showed Remain with a decent lead. Gambling markets showed that the probability of a Remain vote was close to 90%.

The pound hovered around $1.50, and the FTSE 100 index had closed the day ahead. But as the first results from the north-east came in, showing an unexpectedly large degree of support of Leave, the pound plunged. At just after 2am, it was down by around 8 cents against the dollar to $1.41 and the FTSE 100 index future fell by more than 5%. Against the euro, the pound was down by around 3%.

The betting markets have not entirely given up hope, with much of London still expected to vote in favour of Remain. As of 2.20am, Remain was still the slight favourite. So there could be plenty more wobbles during the night.

First published here: http://j.mp/28UDp48

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