The FTSE index is showing little movement on Tuesday. Currently, the FTSE index is trading at 7,284, up 0.09% on the day. There are no key British events on the schedule, so traders can expect a quiet day for the FTSE.
Trade tensions between China and the U.S. have caused sharp swings on the blue-chip FTSE, but the index has shrugged off the dramatic results of the European parliament election. Voters gave a spanking to the mainstream center-right and center-left parties, as populist and nationalist parties made strong gains across Europe. It was a similar story in the U.K., as the Brexit Party, which favors a no-deal exit for the U.K. from the EU, easily won the day, capturing 29 seats. Labor came in second place with 10, and the Conservatives won just 4 seats. The election results were a resounding backlash against the mainstream parties for their handling of Brexit, which has dragged on past the original deadline, with no solution in sight. For investors, the worst-case scenario is a no-deal exit, which could undermine the economy and dampen risk appetite. Unless May can pull a Brexit rabbit out of her hat, it will be up to her replacement, as yet unknown, to try and hammer out a withdrawal deal with Brussels.