Brexit Uncertainty: European Stocks Slide

In early morning trading on Thursday major bourses were in negative territory as pan-European STOXX 600 slips 0.3 percent.

Markets were largely focused on the Brexit events with the drama as British PM Theresa May faced a no-confidence vote which was triggered by opposition leader Jeremy Corbyn. She narrowly won the no-confidence vote by 325 votes to 306 late on Wednesday.

Plan B

PM, Theresa May, in an effort to break the deadlock on the Brexit divorce deal, is urging party leaders to hold cross-party talks. An outline of Plan B will be on Monday, Jan 29, where it is expected that the party will push for an extension past the March 29 deadline of Article 50.

European Stocks Slip

The heightened political events in the U.K. together with the cooling of China’s economy saw the European stocks by Thursday afternoon slipping, with the pan-European STOXX falling 0.3 percent.

The FTSE 100 slipped 0.48% to 6829.40.

The DAX fell 0.30 percent at 10898.57.

The CAC dropped 0.47 percent at 4,788.01.

By Thursday noon, Europe’s banking index fell 1.2 percent after the earnings news from French bank Societe Generale reported negative results for the fourth quarter. Their shares fell over 5 percent and were among the worst performers.

In the UK ITV, British television network shares fell almost 7 percent after Bank of America Merrill Lynch slashed from ‘buy’ to ‘underperform’ their recommendation of stock.

Currencies

• The euro was at $1.1392.
• The Japanese yen gained 0.3 percent to 108.82 per dollar.
• The British pound rose to its strongest in two months up 0.2 percent to $1.2909.

MSCI’s broadest index of Asia-Pacific shares, excluding Japan, climbed 0.2 percent on Thursday.

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