European stocks rise despite UK political turmoil

London - European stocks rose on Wednesday after news that British Prime Minister Theresa May will later face a no-confidence vote over her handling of Brexit negotiations.

In early trade, London's benchmark FTSE 100 index advanced 0.4% to 6 834.55 points.

In the eurozone, Frankfurt's DAX 30 won 0.6% to 10 844.37 points and the Paris CAC 40 climbed 0.8% to 4 834.96.

The pound slipped as low as $1.2478 as the head of a Conservative Party committee in charge of organising leadership challenges announced that May will face a no-confidence vote.

The chief of the so-called 1922 Committee, Graham Brady, said the vote by Conservative members of parliament will be held between 1800 and 2000 GMT, with the result announced shortly afterwards.

In response, May vowed that she will contest the no-confidence vote "with everything I've got".

If May loses, a leadership election is held and, if a new party leader is elected, he or she becomes the new prime minister.

In later morning deals, the pound recovered somewhat to stand at $1.2534, up from $1.2481 late on Tuesday.

The no-confidence vote was triggered after months of plotting by Brexit-supporting Conservative MPs to collect the minimum 48 letters from MPs necessary to trigger a vote.

"The no confidence vote in Theresa May comes as little surprise having been heavily speculated about on Tuesday and following the humiliation of having to cancel the vote she called on her Brexit deal," London-based Oanda analyst Craig Erlam told AFP.

"The question now is whether, having taken so long to secure the 48 letters despite repeated speculation they were close, they have the numbers within the party to successfully remove her.

"There must be a belief that they have the numbers or I do not think they would risk the vote - but I think it will be close."