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May promises to leave after Brexit vote in June

The chances May will see the UK leave the EU got even slimmer as she agreed to set a timeline for her own departure.

Sterling suffers as May runs out of road

Theresa May has promised senior Conservative Party MPs she will set a timetable for an election of her successor after a fourth Brexit vote in the first week of June. If she loses, some sources suggested she will resign. With the cross-party talks failing to find a compromise and Brexit in stasis, the vote in June requires a lot of work to succeed.

The news weighed on Sterling as it became clear the path of leaving the European Union is far from certain and a Tory leadership election could take months. The Pound is now at its lowest level against the Dollar and Euro since mid-February, trading below $1.2800 and €1.1500, respectively.

Meanwhile, China has shown no interest in resuming trade talks with the US, after Donald Trump singed an executive order barring US companies from using telecoms equipment manufactured by Huawei. The Chinese telecoms manufacturer was also added to a list of companies that the White House deems to undermine the country’s interests. As a result, US companies will require a licence to be able to supply Huawei with components.

In a data-light day, market participants will watch further developments with Brexit and May’s departure closely for any indication the Sino-US trade talks could get back on track.

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