Yahoo Finance’s Adam Shapiro, Julie Hyman, and Dan Roberts join Columbia Threadneedle Investments Senior Interest Rate & Currency Analyst Ed Al-Hussainy to discuss the U.S. and European market outlook after Brexit.
British Prime Minister Theresa May urged members of Parliament to work together on a tenable Brexit plan in a brief, televised statement hours after her government narrowly survived a no-confidence vote and a day after her proposed agreement with the European Union on the terms of the U.K.'s withdrawal was overwhelmingly rejected by lawmakers. May urged members of parliament to put aside self-interest and "work constructively together." May on Wednesday night met with leaders of the Scottish National Party, the Liberal Democrats and Plaid Cymru but not Labor leader Jeremy Corbyn, the BBC reported. May said she was disappointed Corbyn hadn't participated, "but our door remains open." Corbyn has said May must rule out a "no-deal" Brexit, in which the U.K. leaves the EU without an agreement governing its relationship with the bloc, before "positive discussions" can take place.
Bitcoin prices are trading marginally higher on Wednesday, continuing to oscillate either side of $3,500.
The British pound is trading in a tight range on Wednesday after U.K. Prime Minister Theresa May’s Brexit deal was defeated in Parliament Tuesday and as lawmakers are debating a no-confidence motion against the government.
The U.K. government survived a no-confidence vote brought by Labour Party leader Jeremy Corbyn over its handling of Brexit on Wednesday. The decision by lawmakers, who voted 325 in support and 306 against the government, leaves the administration intact with Prime Minister Theresa May at the helm. Following the vote, the U.K. will return to the predefined Brexit timeline, giving the government until Jan. 21 to present an alternative Brexit deal after May's proposal was voted down in Parliament on Tuesday. The British pound in response briefly bounced higher but retraced its gains to stand little changed at $1.2861. The euro was slightly weaker against sterling, last buying £0.8866.
British members of Parliament are beginning to vote in a no-confidence motion against Prime Minister Theresa May's government that was brought by opposition leader Jeremy Corbyn. The vote is not expected to oust the government. The Conservative and pro-Brexit European Research Group, which was instrumental in bringing a leadership challenge against May in December that ultimately failed, said they would back the government. The Norther Irish Democratic Unionist Party is also expected to back the Tories. Should Parliament express it has no confidence in the government after all, and no other government can gain confidence within 14 days, a general election would have to be called. May earlier said when addressing Parliament that having a new general election would be the worst possible option. U.K. stocks and bonds were closed at the time the vote began, and the British pound was little changed at $1.2858.
Gold markets went back and forth during the trading session on Wednesday in early trading but found enough support to turn things around and rally again. It looks as if we will continue to pressure the top of this short-term range, and I do think that eventually we break out.
Elaborating on a speech she delivered on Monday, Kansas City Fed President Esther George said the central bank's shrinking portfolio of bonds may be a "fair explanation" for what's driving stock-market volatility. "This idea that it was like paint drying, I didn't really embrace that," she told The Wall Street Journal in an interview. "You have to continually watch it." That said, George told the newspaper the Fed hasn't reached the conclusion it was necessary to change the pace of the bond roll-off. George reiterated to the newspaper that she now advocates for some patience before the Fed raises interest rates further.
The US dollar continues to grind against the Japanese yen, falling initially during the trading session on Wednesday, but bouncing a bit later in the day. At this point though, we are still very much in the consolidation phase.