Lloyds share price (LON:LLOY) has hit a 6-week high following Theresa May’s devastating defeat in the house of commons.

Lloyds share price was up over 1% on Wednesday touching 56.5p. Lloyds had fallen as low as 50p during December as uncertainty over Brexit negotiations hit UK assets.

Theresa May’s crushing defeat on the Brexit deal moves the country closer towards a number of scenarios that will soften the impact of Brexit.

The first of these options, as requested, by Jeremy Corbyn is a general election. Although this is unlikely in the short term, a general election could see Jeremy Corbyn, a proponent of a softer Brexit and staying in the customs union, as prime minister.

Staying in the customs union would reduce any negative impact on trade and have less of an impact on the economy which would be a positive for Lloyds share price.

Despite being rubbished initially, there is growing momentum for a second referendum, the question on the paper is anyone’s guess, but again such a scenario is likely to avoid the no deal or hard Brexit damaging to the UK economy and Lloyds share price.

The third scenario, and one that would avoid the UK going to the polls again, is the revoking or extending of Article 50. A revocation would provide the government more time to formulate a plan that can actually make it through parliament, a would an extension. It may also stop Brexit altogether.

In any of these scenarios the forecast devastation of the UK economy would be avoided and provide the potential for plenty of upside in the Lloyds share price.

Lloyds reported a 18% increase in profit after tax in the nine months to 30th September reflecting the reduction in litigation and PPI costs.

Lloyds is set to report full year results 20th February.