European markets higher after May's Brexit vote defeat; Pearson falls 6%
The pan-European Stoxx 600 was up around 0.3 percent during mid-morning deals, with most sectors and major bourses in positive territory.
British lawmakers voted 432-202 against May's template to leave the bloc on Tuesday, delivering the worst parliamentary defeat in modern British history.
It prompted opposition leader Jeremy Corbyn to immediately call for a motion of no-confidence in the government, to be held at around 7:00 p.m. London time on Wednesday.
European stocks were slightly higher Wednesday morning, with market participants assessing their options after British lawmakers voted against Prime Minister Theresa May's Brexit deal by a crushing margin.
The pan-European Stoxx 600 was up around 0.3 percent during mid-morning deals, with most sectors and major bourses in positive territory.
Europe's banking index led the gains Wednesday morning, up more than 1 percent as some of Italy's notoriously fragile lenders pared some of their recent losses. It comes after a prominent Italian lawmaker reportedly said mergers among some of the country's struggling lenders could help make Rome's banking system more solid. Italy's Unicredit , FinecoBank FBK-IT and Intesa Sanpaolo were trading around 2 percent higher on the news.
Looking at individual stocks, Norsk Hydro NHY-NO surged to the top of the European benchmark shortly after 10:00 a.m. London time. Shares of the Oslo-listed stock jumped 5 percent after Brazil's state authority lifted a production embargo on one of its aluminum refineries.
Meanwhile, Britain's Pearson PSON-GB slumped to the bottom of the index during mid-morning deals. The education publisher announced Wednesday that it expects higher savings from cost cuts as it continues to go through a major restructuring. But it also said that revenue at its core U.S. business was slowing. Shares of the London-listed stock slipped nearly 6 percent.
On the data front, Britain's inflation rate fell to its lowest level in nearly two years in December, according to official data published Wednesday. Consumer prices rose at an annual pace of 2.1 percent in December, slipping from 2.3 percent in November. The fall was exacerbated by falling fuel prices, providing some support for consumers who have reined in their spending ahead of Brexit.
Brexit chaos
Market focus is largely attuned to political uncertainty in the U.K., with investors turning their attention to a confidence vote on May's government on Wednesday evening.
British lawmakers voted 432-202 against May's template to leave the bloc on Tuesday, delivering the worst parliamentary defeat in modern British history.
It prompted opposition leader Jeremy Corbyn to immediately call for a motion of no-confidence in the government, to be held at around 7:00 p.m. London time on Wednesday.
With time running out before the country is set to leave the European Union on March 29, Britain is now ensnared in political chaos which could lead to a range of options, including a disorderly exit from the EU or potentially even a reversal of the 2016 decision to leave.
Sterling was trading around 0.1 percent higher at $1.2872 on Wednesday morning. The U.K. currency has fallen more than 13 percent against the U.S. dollar since the 2016 referendum.
In Asia, MSCI's broadest index of Asia-Pacific shares, excluding Japan, was slightly lower.
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