Britain will make a "hard exit" from the European Union.
Prime Minister Theresa May is rumored to announce the United Kingdom will seek a swift and total exit from the European Union. The Times reported that May will tell the world on Tuesday that Britain will leave the European Union's single market and no longer recognize the European Court of Justice's jurisdiction on the U.K. Her government will also seek new trade agreements with foreign nations, both inside and outside of the E.U., that are wholly unrelated to pre-existing agreements forged by the European trade bloc.
No. 10 Downing Street has not confirmed the veracity of the report.
While May has previously promised she will offer little commentary as the U.K. moves toward officially leaving the E.U., the speech has surprised many analysts who have expected May's Conservative government to take a more cautious and conciliatory approach toward breaking from the nation bloc.
European stocks were hit hard on the news, with German's DAX index falling 0.7 percent in Monday trading. France's CAC 40 also fell 0.7 percent. British firms were unaffected; the FTSE 100 stayed flat in Monday trading.
Weakness in European stocks is likely to impact U.S.-based ETFs that have heavy exposure to Europe such as The European Equity Fund, Inc. (EEA) and the Lattice Developed Markets (ex-US) Strategic ETF (RODM). These funds will see no price changes on Monday, due to the holiday. All U.S. stock exchanges are closed in observance of Martin Luther King Jr.'s birthday.