UK Markets Rise After May Announces Resignation
May 24, 2019, 5:12 AM | Updated: Jun 8, 2022, 5:06 pm
Prime Minister Theresa May makes a statement outside 10 Downing Street on May 24, 2019 in London, England. The prime minister has announced that she will resign on Friday, June 7, 2019. (Photo by Leon Neal/Getty Images)
(Photo by Leon Neal/Getty Images)
LONDON (AP) – The pound and British stocks are rising after Prime Minister Theresa May announced her resignation, as some investors appear to hope it could unblock the political stalemate over Brexit, though analysts warn it could simply mean another delay to the EU departure.
The Conservative Party will tap a new prime minister after May leaves on June 7 and it is more likely that the next leader will be more in favor of Brexit. However, experts say a “no-deal” Brexit — in which Britain leaves the EU without a deal on new trade relations, causing havoc for business — remains unlikely as lawmakers remain divided over how to proceed.
Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, notes that “changing the leader won’t alter the maths in parliament.”
Tombs expects Britain will remain stuck in political stalemate for at least another year, requiring an extension to its Oct. 31 Brexit deadline.
The pound was up to $1.2715 on Friday from $1.2660 before May’s announcement. The FTSE 100 stock index was up 0.6%.
