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Market reaction to Brexit 'doesn't bear thinking about', says business secretary

Britain's Business Secretary Sajid Javid leaves 10 Downing Street in London, Britain April 12, 2016. REUTERS/Stefan Wermuth

LIVERPOOL, England (Reuters) - Business Secretary Sajid Javid warned on Monday that financial markets could react sharply if Britain votes to leave the European Union on June 23, as traders pushed sterling to its lowest level in eight weeks.

With polls showing public support is roughly evenly split, the outcome of the referendum has increasingly dominated the performance of Britain’s currency and stock market, with investors already looking to protect themselves against price swings.

Javid, who backs Britain remaining in the EU, cited market volatility as a warning against voting to leave, highlighting the sharp reaction to an opinion poll last week that showed a large lead for the ‘Out’ campaign.

“How will the markets react if we vote to leave? It almost doesn’t bear thinking about,” Javid told the International Festival for Business in Liverpool, northern England.

Reporting by William James, editing by James Davey

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