Brexit: Global markets faces rough day
An economist is expecting a rough day on the markets after the UK voted to leave the European Union.
Sasfin's David Shapiro says analysts don't really know what to expect, as the decision is somewhat unprecedented.
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He says the outcome of the polls also took many by surprise.
''Global markets are under severe pressure at the moment and we are going to see a sell off. The kind of the proportions that we have seen in 2008/09 in some of the worst times in the market.
''I think the most difficult thing is trying to deal with the uncertainty of what this means, because there has been no precedent and nobody knows what this is going to mean'' he said.
Shapiro says the global nature of today's markets means South Africa will also be affected by the UK's decision to leave the EU.
''We are not directly involved in this as South Africans. We are just watching from the outside but today global economies are so interlinked and we are so close to these economies that we have to be affected.
''In times like these, everybody rushes for the safety of bonds or the safety of the Dollar and I'm talking dollar bonds. The Rand has fallen from R14. 40 cents yesterday'' he said.