Dow Jones down after second Brexit vote defeat
Wall Street stumbles after a Brexit vote results in another defeat.
The Dow Jones is down as UK Prime Minister, Theresa May’s, Brexit deal was again defeated in Parliament. The vote was 391-242 against the measure.
Why did the Dow Jones fall after Brexit vote?
The Dow Jones likely fell because of uncertainty about the UK after May’s new Brexit deal was defeated. Parliament rejected another proposal of hers two months earlier. This proposal was meant to avoid a hard border that could cause conflict between Ireland and Northern Ireland. Before the vote,May said that the deal was pivotal to Great Britain’s future.
‘If this vote is not passed tonight, if this deal is not passed, then Brexit could be lost,’ said May.
However, the deal seemed unlikely to pass. With this latest defeat, there is more concern about whether Britain will end up with a no-deal Brexit on March 29. Despite the political turmoil, the UK economy is still strong , as IG analyst, Joshua Mahony, noted.
‘We have seen a huge boost to the UK economic picture, with growth, industrial production and manufacturing production all beating market estimates,’ said Mahony.
Though there are two more votes scheduled, European Commission President, Jean-Claude Juncker, warned that there would be the UK’s deal with the EU would be the final one before March 29.
‘There will be no third chance. There will be no further interpretations of the interpretations, no further assurances of the reassurances if the ‘meaningful vote’ tomorrow fails,’ said Juncker.
What’s next for the Dow Jones and Brexit?
Brexit’s future is even more uncertain after this latest vote and that could eventually weigh on Wall Street. If the UK heads toward a no-deal Brexit, the unpredictability of the deal will add to more global concerns in the US stock market. UK and US investors will watch to see how the Brexit drama will finally end.
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