Brexit: quick response
The 'meaningful vote' for UK Prime Minister Theresa May’s Brexit bill transpired and, as expected, suffered a convincing defeat.
It is uglier for the UK Prime Minister Theresa May than expected, as she was only backed by 202 Members of Parliament (MPs) while 432 voted against her. The floor of the House of Commons broke into a cacophony after the results were announced.
May’s response to the House of Commons's Brexit outcomes was well prepared, one would say she knew that a loss was upon her. In her response. she assured the house she will bring an amendable motion for parliament on Monday.
Opposition labour leader, Jeremy Corbyn, tabled a motion of no confidence against May. Therefore, the vote of no confidence will take place tomorrow and, if successful, would lead to general elections. However, the results for tomorrow’s vote are uncertain since the Democratic Unionist Party and the pro-Brexit European Research Group stated their support to the prime minister.
Liberal Democrat deputy leader, Jo Swinson, called for a second referendum, while many other MPs demanded an extension to Article 50.
The European Commission president Jean-Claude Juncker’s office released a statement expressing the bloc’s regret at the decision, while reaffirming that the existing Brexit deal is not up for renegotiation. Further, the market response to morning events has so far been a classic case of ‘buy the rumour, sell the fact’, it seems.
Meanwhile, the GBP/USD leapt from its intraday lows on the news, rallying from $1.269 to above the $1.28 handle in the immediate aftermath of the vote, and Dow Jones stocks fell initially, only to recover their losses into the market’s close.
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Trading around Brexit
Find out how the UK’s exit from the EU continues to affect traders, and discover:
- The unique opportunities in a ‘hard’ and ‘soft’ Brexit
- The markets you should be watching
- Everything that’s happened so far
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