Market focus is largely attuned to political uncertainty in the U.K., with investors turning their attention to a confidence vote on May’s government on Wednesday evening.
British lawmakers voted 432-202 against May’s template to leave the bloc on Tuesday, delivering the worst parliamentary defeat in modern British history.
It prompted opposition leader Jeremy Corbyn to immediately call for a motion of no-confidence in the government, to be held at around 7:00 p.m. London time on Wednesday.
With time running out before the country is set to leave the European Union on March 29, Britain is now ensnared in political chaos which could lead to a range of options, including a disorderly exit from the EU or potentially even a reversal of the 2016 decision to leave.
Sterling was trading around 0.1 percent lower at $1.2846 on Wednesday morning. The U.K. currency has fallen more than 13 percent against the U.S. dollar since the 2016 referendum.
On the data front, Germany, Italy and the U.K. will all publish their latest inflation rate figures on Wednesday morning.
In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was slightly lower.