Following May's Brexit Vote Failure, European Stock Market and Banks Gained High

Feb-2019 | Extense Research | Technology

UK’s Prime Minister Theresa May lately suffered a degrading defeat for her plan to exit Britain from the EU (European Union). With only 10 Weeks left to leave the bloc, the vote failure is driving the country further in political turmoil. As the market players anticipated a no-confidence vote in Britain’s government directed by Theresa May, the European stock market closed higher recently. The pan-European Stoxx 600 increased by almost 0.5%, with most of the sectors and major exchanges in positive territory.

European banking index controlled the earnings—increasing by 2.4%—as some of Italy’s notoriously weak lenders trimmed some of their recent losses. The reduction came after a prominent Italian policymaker said that mergers among some of Italy’s fraught lenders can aid in making Rome's banking system more firm.

May's Brexit vote defeat has contributed to the banking sector’s gains. Italy's FinecoBank and Unicredit gained about 6% after the news. In the meantime, shares in Germany's Deutsche Bank increased by 8.4% after Bloomberg reported that regulators would prefer the bank to unite with a European competitor rather than German rival Commerzbank. The UK’s Metro Bank was among Europe’s best performers, with shares increasing by over 10% by the end of the session. In corporate news, shares in Norsk Hydro—the global supplier of aluminum—surged more than 5%.

While the European stock market gained high, at the same time, on the other end of the scale, some organizations faced the reductions in their gains. Pearson—British education publisher—revealed that profits at its core US business were dropping down. It slumped toward the base of the index—after May’s vote defeat—with shares of the London-listed stock declining 6%. World’s second largest cinema chain and UK-based Cineworld was the session’s bad performer, with shares collapsing by 7% after it disclosed a slowdown in a revenue gain for 2018. The fall was aggravated by lowering fuel prices. The markets in UK are largely focused on political uncertainty in Britain currently, with financiers turning their awareness to a confidence vote on May's administration.