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.


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. See full non-independent research disclaimer and quarterly summary.

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

Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
-
-
-
-
China 300
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.