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Once again, traders were reminded never to get too hopeful about a Brexit deal.

Not even a day after the accord was reached, two of U.K. leader Theresa May’s ministers resigned, imperiling yet again an agreement that would pave the way for Britain’s orderly departure from the European Union.

The reaction in markets was swift -- and, in many ways, predictable. The pound plunged, boosting the international-packed FTSE 100. British mid-caps, which tend to be more domestic-facing, fell. Even U.S. futures reversed gains and the Stoxx Europe 600 dropped 0.4 percent.

“This could be the end of the road for May,” said Naeem Aslam, chief market analyst at Think Markets U.K., after the resignations of Brexit Minister Dominic Raab and Work and Pensions Secretary Esther McVey.

The slide in local stocks was brutal:

• Among banks: Barclays Plc fell 6.6 percent, Royal Bank of Scotland Group Plc dropped 6.8 percent and Lloyds Banking Group Plc slid 4.9 percent
• Among homebuilders: Barratt Developments Plc declined 6.6 percent, Persimmon Plc tumbled 6.8 percent, Berkeley Group Holdings Plc lost 6 percent and Redrow Plc fell 5.7 percent
• Among retailers: Next Plc dropped 5.3 percent, Marks & Spencer Group Plc was down 3.3 percent and Kingfisher Plc weakened 2.6 percent
• U.K. airlines, insurers and utilities also slumped
• Real-estate company British Land Plc shed 4 percent, only hours after a Credit Suisse note said catalysts for the stock include “reduced uncertainty surrounding Brexit”

Volumes on the FTSE 100 were about 88 percent higher than the past 20 days.

Meanwhile, adding to the drama were Italy’s widening bond yield spreads, which hit European banks. Auto stocks were the worst performer in Europe after gaining on Wednesday.

“The situation is slipping out of control,” Chris Beauchamp, chief market analyst at IG Group Holdings Plc, said by email. “Brexit has just blown up again and, thrown together with Italy, trade wars and U.S. earnings, risk appetite is unlikely to recover for long.”

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