Dow Jones up despite Brexit defeat

Dow Jones is up despite the resounding defeat of Brexit in parliament. It was voted down 432-202, the worst government defeat in UK history.

What's next after Brexit defeat?

The defeat of the deal comes after eight days and about 200 speeches. The UK Prime Minister, Theresa May, accepted the defeat of the bill she fought hard for at the end of the vote. 'The government respects the will of the House', said May.

After the measure was voted down, Labour Party leader, Jeremy Corbyn, called for a vote of no confidence against May. Corbyn was bitterly opposed to Brexit and cheered the failure of the bill. 'This is a catastrophic defeat. The house has delivered its verdict on her deal. Delay and denial has reached the end of the line', said Corbyn.

Why Dow Jones is unaffected

Despite the turmoil, US stocks are up on the strength of reports from banks such as Citigroup. It remains to be seen how this latest Brexit vote will affect the US stock market. David Bailin, global head of investments at Citi Private Bank, advised US investors to avoid trading the pound during the volatility in UK politics. Bailin added on by saying, 'over the next 24 hours, what all we’re going to find out is the degree to which May loses and how much she loses by. That is not something one actually trades on'. The British pound was down before the vote, but rose after the measure was struck down.

‘Traders are seemingly taking the outcome as paving the way for an extension of the [Brexit] deadline, rather than increasing the chances of a no-deal Brexit and this has caused the recovery seen in the pound', said David Cheetham, chief market analyst at XTB.

US stocks are likely to rise and fall based on the latest banking earnings,but UK politics could be a factor on Dow Jones. Investors will watch and see how this Brexit drama will ultimately play out.