After UK election shocker, Brexit itself looks ‘surely in trouble now’ – MarketWatch
Another election, another surprise.
Markets are taking the shock U.K. result pretty well. Except for the poor pound
“Theresa Dismay” and “Mayday Mayday!” are the headlines, after the Conservatives’ grip on government slipped. Still-prime-minister-for-now Theresa May’s gamble has failed, producing a hung parliament.
Everyone is wondering what’s next (Boris Johnson as next leader? Fly in James Comey for advice?). And guess what: Analysts are raising the possibility of not only a “softer Brexit,” but even of Britain not leaving the European Union after all.
ThinkMarkets UK’s Naeem Aslam and CMC’s Michael Hewson are among those talking about the potential for a U-turn on the EU, and they deliver our call of the day.
“If we can take away anything from all this, it is that Brexit is surely in trouble now and nothing is off the table, which includes revoking or calling for another referendum,” Aslam says.
Meanwhile, Hewson notes that David Davis is saying the mandate has vanished for leaving the single market and customs union. That admission from the minister in charge of the EU withdrawal “throws into doubt whether Brexit will now happen at all,” the CMC analyst says.
Bear in mind, though, that some analysts are merely saying there’s a bigger chance of Brexit being dropped. “Will the U.K. change its mind on Brexit? Maybe, but not very likely,” says Berenberg’s Kallum Pickering.
What’s more likely to happen is that the break with the EU will be less drastic, with some trade links maintained. There are buyers willing to pick up sterling on the dip, and “this could be on the back of hope that there will now be a soft Brexit,” says City Index’s Kathleen Brooks.
There’s another view: If Boris Johnson takes over from May, there could be a fresh push for a “hard” Brexit, some analysts argue.
In any case, Brexiteer-in-chief and Trump ally Nigel Farage is riled up. He says the election outcome “imperils the whole Brexit process,” so he may get back into politics.
Key market gauges
Futures for the Dow
, S&P 500
are edging higher. That’s after the Dow
inched up yesterday, while Nasdaq Composite
scored another all-time closing high. The Dow and S&P are down slightly for the week, as of Thursday’s close, but the Naz is looking at a weekly gain.
is slightly lower, but German
and French stocks
are up. Asia largely finished higher. Gold
is losing ground, as the dollar
See the Market Snapshot column for the latest action.
StockTwits users are saying “$400 next week?” But they’re also warning “moves like this often end abruptly,” after Nvidia
closed at a fresh record around $160 yesterday.
The stuff that the chip maker and other AI pioneers are working on will be “so integral to our lives in the coming decade and beyond,” writes Josh “The Reformed Broker” Brown.
The blogger and adviser says that doesn’t mean “run out to buy the stock.” Instead, he suggests listening to this clip, which has Nvidia CEO Jensen Huang explaining that now that software has eaten the world, it’s artificial intelligence’s turn to eat software.
Despite so many false statements and lies, total and complete vindication…and WOW, Comey is a leaker!
— Donald J. Trump (@realDonaldTrump) June 9, 2017
Did you miss somehow miss the Comey circus? Here are the key takeaways from the former FBI chief’s big day.
It looks like Theresa May will try to hang onto power, despite the election humiliation and the calls for her to step down. She’s made a deal with Northern Ireland’s Democratic Unionist Party and plans to go to Buckingham Palace to ask permission to form a government, media reports say.
Tim Cook is due to give a commencement speech at MIT about 10:50 a.m. Eastern.
looks set for a down day following its earnings late yesterday.
appears in trouble after the FDA asked the company to stop selling an opioid pain medication.
On the data front, a reading on U.S. wholesale inventories is on tap after the opening bell.
Check out: MarketWatch’s Economic Calendar
A lawsuit claims law enforcement officers groped 900 students in Georgia.
Were dogs at polling stations the best thing about the U.K. election?
Here’s a robot that cleans windows:
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