Janus Henderson: Brexit end point remains unclear

The outcome of the vote on the current Brexit deal was largely expected, but the size of the defeat was larger than the UK government would have hoped. The end point of the Brexit process therefore remains very uncertain. Last night there was an opportunity to achieve some clarity, but a vote in favour of Mrs May’s deal was always considered a long shot. As a result there is no change to the order of events; a vote tonight on a ‘hard’ Brexit at the end of the month, then a vote tomorrow on a delay. 

It is widely expected that there is no majority for hard Brexit, and on that basis a delay is needed. The uncertainty comes in the form of the delay. The key question will become, what is the basis for the delay, and will the European Union accept it. There has been some reduction in uncertainty in that a hard exit seems to be less likely, but it is fair to say that UK assets still remain unloved.