Dow Jones up 100 points after Theresa May resignation
The Dow Jones is up after UK Prime Minister,Theresa May, resigns.
The Dow Jones is rising despite the abrupt resignation of UK Prime Minister, Theresa May. While the British pound faces volatility in the UK, the US stock market is rebounding after losses throughout the week.
Dow Jones unaffected by Brexit drama
May announced her resignation after failing for the fourth time to get Parliament to vote in favour of a deal for Britain to leave the European Union (EU). She expressed her disappointment with not being able to deliver a Brexit deal in her resignation speech.
‘I will shortly leave the job that has been the honour of my life to hold. It is and will always remain a matter of deep regret to me that I have not been able to deliver Brexit,’ said May.
Despite worry from financial analysts that a no-deal Brexit would impact the US stock market, the Dow Jones has largely remained unaffected. However, American corporations like Ford said in a statement earlier this year that a no-deal Brexit would be disastrous for Ford’s UK manufacturing plants.
‘The total cost to us of a hard Brexit, not including currency exchange related effects, could be $500 million to $1 billion in 2019,’ said Ford.
Dow Jones up after Trump promises end to trade war with China
The Dow Jones is also surging because of comments made by US President, Donald Trump. Trump recently said that the US-China trade dispute could be ending soon.
‘It’s happening, it’s happening fast, and I think things probably are going to happen with China fast because I cannot imagine that they can be thrilled with thousands of companies leaving their shores for other places,’ said Trump.
While there is no confirmation of talks between the US and China, Trump’s speech gives investors optimism that the US is eager to end its tariff war with China.
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