Europe’s stocks opened higher on Thursday after the U.K.’s new prime minister named her closest team of officials, removing more uncertainty about the country’s political scene after the Brexit vote.
The pan-European STOXX 600 was up 0.75 percent.
European stocks closed mostly lower on Wednesday as the U.K. awaited new leader but Theresa May’s appointment as the new prime minister came soon after in the early evening, after David Cameron tendered his resignation to the Queen.
Later Wednesday evening, May announced her cabinet with a mixture of pro-EU and Brexit campaigners appointed to the top jobs.
Former foreign secretary Philip Hammond replaced George Osborne as Chancellor (Hammond campaigned for Britain to stay in the EU) and Boris Johnson, former London mayor and prominent Brexit campaigner became foreign secretary – the appointment of the eccentric politician raising eyebrows and some laughs on social media site Twitter.
Amber Rudd is the new home secretary and Michael Fallon is the new defence secretary; both were remain campaigners. Leave campaigner and long-time euroskeptic David Davis was appointed “Secretary of State for Exiting the EU.”
The Bank of England’s Monetary Policy Committee could cut interest rates by 25 basis points to 0.25 percent on Thursday in order to prevent the U.K economy from deteriorating in the aftermath of the vote.
Meanwhile, Asian markets traded mixed early Thursday, taking cues from U.S. stocks which closed near the flatline but still managed to make it further into record territory. The Dow Jones industrial average closed about 24 points higher, at an all-time high, and notching a four-day winning streak.
Source: CNBC
