WhyItDropped

Nikkei 225 · June 24, 2016

The Brexit Referendum

-7.92%

single-day change vs previous close

Part of a longer stretch

Two and a half years the world rose together

early in it · 2016-02-12 → 2018-10-02, +62.32% over the whole period

What happened that day?

  • 24 June 2016 — Nikkei 225 fell 7.92%. Tokyo was mid-session while Britain's EU referendum was being counted
  • Markets had expected Remain, and that expectation was in prices
  • When the opposite result came, the reversal was large
  • Japan's distance from Europe offered little comfort
  • Rising uncertainty strengthens the yen, and a stronger yen worsens exporters' earnings (the structure that recurs throughout this list)
  • Fell 14.91% from peak. As the actual withdrawal stretched over years, markets stabilised comparatively quickly

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.