As I wrote in another post, after the UK voted to leave the EU, the Nikkei 225 was off 8%, the DAX 7%, CAC 40 8%, and the Stoxx 600 7%. The various US indices (e.g., S&P 500, Dow Jones) fell in the mere 3%-4% range . Yet the FTSE 100, covering the top 100 companies on the London Stock exchange based on market capitalization, fell just 3.15%. In theory, shouldn’t that have been the market off the most, given Brexit affects the UK most directly?My personal opinion is that the FTSE’s minor tumbling is a product of investors’ beliefs over the central bank policy that will come out of the Brexit vote. In order to prop up any issues in the British economy in the near-term, I believe the Bank of England will likely print money in a similar vein to the quantitative easing program by the US Federal Reserve. This is directly bullish for stock prices and the Bank of England was likely behind the scenes Friday with its hand in the market ensuring that the FTSE’s fall was more moderated going into the weekend. Should the Bank of England choose to ease in the interim, this will depreciate the pound in the near-term while moderating any effects on corporate stock prices. You can be sure that other nations, such as France and Germany, who would also very likely leave the EU if they were offered referendums, will be watching economic events unfold in the UK over the coming months. UK stock indices will be tracked heavily to discern the real world effects on a proxy for corporate performance. The British pound will also be monitored to determine how badly it will be hit. While export reliant economies such as Germany might not overly worry about currency depreciation, they will be concerned if the currency takes a hit such that might excessively cheapen their labor force and lower domestic living standards relative to the rest of the EU.