European Stocks Brush Off Brexit Court Ruling

European stocks brush off Brexit court ruling

LONDON, (Pakistan Point News - APP - 24th Jan, 2017 ) - European stock markets edged out gains Tuesday as traders brushed aside a Brexit court ruling seen as making little difference to Britain's timetable or leaving the EU. However, the pound slipped a bit after the UK Supreme Court's verdict that Britain's government must win parliament's approval before beginning formal Brexit negotiations. The announcement "is unlikely to ultimately make a large difference and the balance of probabilities suggest that the self-imposed deadline will be met," said XTB analyst David Cheetham.

Indeed, the UK government said the court ruling would do "nothing" to change Prime Minister Theresa May's timetable of triggering Article 50 -- the formal procedure for leaving the EU -- by the end of March at the latest. But the main opposition Labour party and the Scottish National Party (SNP) have said they will introduce amendments to any government legislation to start Brexit, which could potentially cause a delay. "Sterling fell and then recovered some of the losses following the Supreme Court's ruling as the judges' decision casts a pall of uncertainty over the triggering of Article 50," said senior ETX Capital analyst Neil Wilson.

"The moves need to be seen in the broader context of sterling's plunge since June, however. These are pretty minor adjustments and the pound is stuck in a range it's traded in since the start of October of between roughly $1.20 and $1.27," he added in a client note.