Britons voted to part from the European Union causing turmoil in the markets. Reports suggest that as much as £120 billion vanished from FTSE 100 (INDEXFTSE:UKX) within minutes of Brexit referendum results. Banks became prey to market anxiety that followed resignation from British Prime Minister, David Cameron.

Markets in mayhem

There was widespread panic in South Asian economies as billions of funds siphoned out following the UK vote. Doubtlessly, today’s event has created a wide unrest in markets, and U.S. equities are likely to remain in tandem to present uncertainties. U.S. stock futures confirm the same as S&P 500 INDEX (INDEXCBOE:SPX) Futures headed down by 3.37% to 2,038.88 and NASDAQ (INDEXNASDAQ:NDX) Futures quickly erased 3.36% to 4,312.50 during early trade.

Bloodbath in world markets, particularly in the UK led Bank of England to announce £250 billion of funds to deal with the turmoil. BoE’s Governor Mark Carney tried to soothe markets by stating that Brexit will not change any equation between the UK and the EU.

Setback to rate hike expectations

Meanwhile, analysts at JP Morgan are looking at increased chances of Scotland leaving the UK even before the latter completely exits EU. Malcolm Barr, an economist at the research firm, hold the opinion that Brexit could lead BoE to cut interest rate by at least 50 bps during its August meeting.

Brexit has jolted the currency markets, sending Pound to 31-year low and snapping gains out of U.S. Dollar (CURRENCY:USD). Traders have now embraced the reality that rate hike by the Federal Reserve could be tossed away for longer than expected following today’s unexpected event. These speculations are source for driving momentum in both SPDR Gold Trust (ETF) (NYSEARCA:GLD) and yen, which are safe bets during volatile times.

Like other asset classes, iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) is also reacting to the Brexit news, however, analysts state that volatility in oil is only short-term.