Dow Jones up after Theresa May wins no confidence vote
Theresa May wins her second no-confidence vote in a month.
The Dow Jones is still going strong after UK Prime Minister, Theresa May, has won another no-confidence vote after her Brexit deal was defeated.
Theresa May and Wall Street survive turmoil
After the defeat of the Brexit deal, Labour leader, Jeremy Corbyn, brought a no-confidence vote against May. She survived this vote, just as she did a month ago. Wall Street rose after the news in December 2018, and the latest news seems to have calmed down investors worried about the UK drama.
After she won the vote 325-306, May vowed to continue to fight for Brexit and 'continue to work to deliver on the solemn promise to the people of this country to deliver on the result of the referendum and leave the European Union'.
Corbyn noted that there must be a deal in place before Brexit takes place in March.
'The government must remove clearly, once and for all the prospect of the catastrophe of a no deal exit from the EU and all the chaos that would come as a result of that,'said Corbyn.
How Brexit and May affect Wall Street
With May remaining as prime minister and the defeat of Brexit, there is stability on Wall Street, according to IG analyst, Kyle Rodda.
'Markets hate uncertainty, so this relieves that anxiety for now,' said Rodda.
While the Dow Jones is so far unaffected by the Theresa May no-confidence vote and the pound is rising against the dollar, there could be deep repercussions in the US if the Brexit deal isn't ironed out. Trade could be greatly impacted with high tariffs if the UK has to create trade deal separate from the European Union. While stability is calming Wall Street now, if Brexit isn't resolved in a neat and timely manner, global concerns can start to worry US investors.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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
Live prices on most popular markets