We study stock market reactions to the Brexit referendum on 23 June 2016 in order to assess investors' expectations … were driven by fears of a cyclical downturn and by the sterling depreciation following the referendum. We also find …, indicating that investors may have updated their expectations in light of the possibility of a "hard Brexit". We do not find a …

Authority).The economic-political instability of a country, which is tied to its credit risk, often leads to sharp depreciation …