LONDON (Reuters) – Britain’s blue chip stocks were lower in early deals as the stronger pound pushed multinationals lower after Prime Minister Theresa May’s deal to leave the European Union suffered an overwhelming defeat and weak results from Pearson weighed.
The top share index was down 0.1 percent at 0848 GMT, lagging European peers as the sterling hit its highest since November, a day after British lawmakers overwhelmingly defeated May’s Brexit divorce deal.
Minister - Loss - Chance - Brexit - Uncertainty
The prime minister’s historic loss was seen as reducing the chance of a hard Brexit even as uncertainty ahead of a no confidence vote in May’s government on Wednesday evening kept trading muted.
Consumer staples which earn their revenue abroad in foreign currency accounted for the biggest drop, with oil and gas down 0.5 percent. Blue-chip stocks generate 70 percent of their income overseas.
Midcaps - Half - Income - Home - Percent
The domestically focused midcaps , which make half of their income at home, were up 0.4 percent. Ireland’s top share index , one of the barometers for Brexit sentiment, was up 0.5 percent.
A hard exit is “a lower probability risk than it was, but...
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