Popular U.K.-focused ETF edges up after Theresa May suffers historic Brexit defeat
Country-specific exchange-traded iShares MSCI United Kingdom ETF turned slightly higher by 0.2% Tuesday afternoon after U.K. Prime Minister Theresa May's plan to divorce from the European Union was soundly defeated in a closely watched parliamentary vote. The results showed that 432 members of Parliament voted against the so-called Brexit plan, while 202 voted in favor. The results came after the U.K's popular stock benchmark, the FTSE 100 , was closed, ending the session up 0.6%, before voting commenced. The U.K. ETF provides the earliest sign of how the FTSE may perform in Wednesday trade. Meanwhile, the British pound was trading lower against the dollar, which has usually provided a lift for the FTSE 100-- predominated by international companies that tend to benefit from a weaker pound. The Brexit defeat marks one of the worst such outcomes for a U.K. prime minister and also resulted in opposition party Jeremy Corbyn bringing a vote of no-confidence in the government, which will be debated in Parliament on Wednesday. Meanwhile, stock markets in the U.S. shook off the Brexit vote, with the Dow Jones Industrial Average , the Nasdaq Composite Index and the S&P 500 index all trading solidly higher. The deadline for Brexit was set for March 29, but Tuesday's vote adds uncertainty to many aspects of the Brexit plan.
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