European markets open higher as British lawmakers close to blocking no-deal Brexit
European markets opened higher on Wednesday morning after British lawmakers defeated Prime Minister Boris Johnson’s government in a vote to seize control of parliamentary business, moving closer to blocking a no-deal Brexit.
The pan-European Stoxx 600 was up 0.8 percent by late morning, autos jumping 2.1 percent to lead gains as all sectors and major bourses traded in positive territory.
In the House of Commons on Tuesday night, MPs voted to allow a bill to block a no-deal Brexit to be introduced, defeating the government by 27 votes as 21 lawmakers from Johnson’s own ruling Conservative party voted with the opposition.
All 21 have since been expelled from the party, including two former finance ministers and the grandson of iconic wartime Prime Minister Winston Churchill. Another Conservative MP, Phillip Lee, also left the party to join the pro-EU Liberal Democrats.
Johnson said following the vote that he would table a motion for a general election, but main opposition Labour party leader Jeremy Corbyn said he will not back the early election unless the bill ruling out no-deal is passed first.
Sterling gained on Wednesday morning, rising to $1.2107 having fallen as low as $1.1958, its lowest since an October 2016 flash crash, during Tuesday’s session.
Hong Kong stocks surged nearly 4 percent on Wednesday afternoon after reports that the extradition bill which triggered months of violent mass protests has been fully withdrawn. The reports have since been confirmed by Hong Kong leader Carrie Lam.
Lam had suspended the bill in July but protests continued, with Sunday proving the most violent day since mass protests first broke out in early June.
Back in Europe, Italy looks set for a new government after members of the anti-establishment Five Star Movement (M5S) voted overwhelmingly in favor of a proposed coalition with the center-left Democratic Party (PD) on Tuesday.
Meanwhile Reuters reported that France has proposed offering Iran around $15 billion in credit lines until year-end, providing Tehran returns to full compliance with its 2015 nuclear deal, a move which hinges on Washington’s agreement.
Stocks on the move
French electronics group Thales saw its shares rise by 7.2 percent in morning trade following strong first half results.
At the other end of the European blue chip index, Iliad shares fell 4.3 percent after Bank of America Merrill Lynch cut the French telecoms company’s price target.
Barratt Developments shares shed 3 percent after first half results as Brexit continues to weigh on Britain’s construction sector.
Source: CNBC
