Stocks around the world in green ahead of no-confidence vote against May

NEW YORK: Major world stock indexes rose on Wednesday, with the S&P 500 supported by gains in U.S. bank stocks after strong earnings, while the pound edged up ahead of a no-confidence vote in British Prime Minister Theresa May’s government.

Investors saw a potential for legislative deadlock forcing London to delay its departure from the European Union following the parliamentary defeat of May’s Brexit deal late Tuesday. The no-confidence vote is expected at 1900 GMT.

May is expected to survive the vote, sponsored by the main opposition Labour Party. Expectations of a softer Brexit – perhaps incorporating the Labour Party’s idea of membership of a permanent customs union – gave support to the pound.

Sterling GBP was last trading at $1.2868, up 0.08 per cent on the day.

Stocks had mostly priced in the Brexit vote’s defeat and were trading higher. The pan-European STOXX 600 index rose 0.52 per cent and MSCI’s gauge of commodities across the globe.MIWD00000PUS gained 0.28 per cent.

On Wall Street, strong earnings from Bank of America (BAC.N) and Goldman Sachs (GS.N) as well as a multibillion-dollar deal in the fintech sector kept stocks in positive territory.

“The fact that JPMorgan and Citi laid the groundwork for bank earnings not being as bad as markets thought made it easier for Goldman and Bank of America,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

Read More: British Pound hits seven-week-high ahead of critical Brexit vote

The Dow Jones Industrial Average .DJI rose 149.65 points, or 0.62 percent, to 24,215.24, the S&P 500 .SPX gained 10.4 points, or 0.40 percent, to 2,620.7 and the Nasdaq Composite .IXIC added 33.52 points, or 0.48 percent, to 7,057.35.

The dollar rose against the euro as the euro zone single currency was pushed lower by worries about the zone’s economy, with the euro EUR= down 0.11 per cent to $1.1402.

Earlier this week, data showed Germany barely escaped a recession in the second half of 2018, and European Central Bank chief Mario Draghi warned on Tuesday the eurozone economy was weaker than anticipated.

In sovereign debt markets, British government bonds underperformed versus German peers in early trade.

U.S. Treasury yields rose as stronger-than-forecast results from two major banks lifted Wall Street, reducing safe-haven demand for U.S. government debt.

Benchmark 10-year notes US10YT=RR last fell 6/32 in price to yield 2.7272 per cent, from 2.708 per cent late on Tuesday.

Oil prices eased after climbing about 3 per cent in the previous session, with worries about the global economy and forecasts of swelling U.S. production hurting sentiment.

Brent crude futures LCOc1 were last down 19 cents or 0.31 per cent at $60.45 a barrel.

U.S. crude CLc1 was last down 35 cents, or 0.67 percent, at $51.76 per barrel.