European stocks were hit hard on Thursday amid fallout from the US-China trade war and UK prime minister Theresa May's mounting pressures to step down.
Europe-wide STOXX 600 fell 0.8 percent and Germany's DAX index dropped one percent. Auto and mining stocks across Europe also plummeted 2.8 and 1.04 percent, respectively.
Regarding Brexit, the London FTSE 100 fell 0.5 percent, affecting the housing market the hardest.
British utility stocks are trading at a growing discount to euro zone peers as investors fear the country's deepening political crisis could trigger a general election that ushers in renationalisation of the industry, worth $76 billion (£59.9 billion).— Dr. John Danson Kiambuthi (@JohnDKiambuthi) May 23, 2019
May's cabinet faces fresh rounds of chaos after Commons leader Andrea Leadsom resigned on late Wednesday over PM May's Brexit plan, sparking outrage across Westminster where many MPs called for May to resign. The Prime Minister is expected to speak with the 1922 Committee on Friday and to announce her resignation.
Cabinet ministers say they can't back PM's new Brexit deal— Steven Swinford (@Steven_Swinford) May 22, 2019
One told me: 'We are going to push very, very hard to make sure that this does not see the light of day. It's a disaster
'Everyone is just waiting for her to work that out and stand down'https://t.co/9NMNRyKB3S
The ruling Conservative party lost roughly 1300 councillors and 44 constituencies in early May's local elections across the UK, and MPs have called for May's resignation as voters go to polls for the European elections, where Tories are expected to suffer major losses.
According to reports, No. 10 has not faced such challenges since former PM Margaret Thatcher was forced to resign in 1990 after being advised similarly by the 1922 Committee. Roughly 12 MPs will contest for her position if she steps down, with Andrea Leadsom, Rory Stewart, Boris Johnson, and Esther McVey announcing their bids for the Prime Minister's seat as the Brexit Party is expected to win European elections on Thursday.