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16 January 2019

No surprises for markets after Brexit vote defeat

It came as no surprise to many that last night’s parliamentary vote ended in defeat for Theresa May’s Brexit plan, by an historic margin of 432 votes to 202.

James Rowbury, Investment Research Coordinator at Redmayne Bentley, said: “Markets have shown little reaction to the outcome, with both Sterling and the leading FTSE 100 index remaining relatively subdued in early morning trading. More uncertainty now presides over the UK and Europe, as the Prime Minister fumbles together her plan B in the face of the President of the EU commission, Jean-Claude Juncker, tweeting: ‘Time is almost up’.

“As expected, the Leader of the Labour Party, Jeremy Corbyn, has tabled a vote of no confidence in the government, triggering a process which could see a new government formed. The outcome of the debate is shrouded in uncertainty and, if passed, will begin the 14-day countdown for a new Conservative leader to form a fresh government. Other parties may, of course, put their own hat in the ring, although the Tories have the only plausible number of seats in the house to gain realistic support. As we have seen in recent years, such circumstances are not out of the question.

“Markets now look forward to today’s more meaningful vote and a potential fortnight of further talks, having already priced in the uncertainty we are witnessing. In terms of our portfolios, we remain positioned as we were before: diversified across a range of asset classes and regions to ensure we mitigate any potential downside risks, whilst monitoring the ongoing situation closely.”

Ends

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Redmayne Bentley offers a full range of services, from investment management services suitable for different life stages, through to traditional stockbroking, dealing with advice and tax efficient investments.


 
No surprises for markets after Brexit vote defeat

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