Biggest loss in the History of UK

Daily Analysis - 16/01/2019

UK Prime minister faces a vote of no confidence

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Yesterday, May's deal on how UK will depart from the EU was denied by 230 votes. The opponent Labour Party, that has strongly supported Britain to continue to be part of the European Union, tabled a no-confidence vote upon May. Theresa May is the leader of the commanding Conservative Party. Yesterday after she applied the famous Withdrawal Agreement she lost by a historic loss of 230 votes. The agreement describes how England must depart from the European Union by March end.

For Jeremy Corbyn, the best is for the PM to lose also the leadership vote. That will open the way for a general election that the opposing party (Labour) is expected to win. Many experts, on the other hand, have a strong belief that May will win the no-confidence vote.

Asia shares were mixed


On Wednesday Asia Pacific markets were mixed. Traders filtered in the new uncertainties regarding the U.K.'s departure from the European Union. Australia's benchmark index ASX 200 scored about 20 points, while the subindex gained more than 0.5%. The Topix index slid about 4.9 points, Japan's Nikkei 225 dropped 112.52 points while in South Korea, the Kospi climbed 8.9 points. In Greater China markets were also mixed, with the Shanghai composite essentially at the same levels, while the Shenzhen composite and Shenzhen component index closed little lower. Hong Kong's Hang Seng Index rising about 0.12%.

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Oil prices seen steady today


On Wednesday Oil was steady while warnings of global economic retardation are becoming more and more pronounced. The OPEC-led supply cuts supported the popular commodity Brent crude futures and hold it over $60 per barrel. The U.S. West Texas Intermediate crude futures were somewhat even from their last close, at about $52.10 a barrel while The International Brent crude oil futures were at $60.60 per barrel, about 1.5 cents from the last trading session. Norbert Ruecker, head of a commodity research said "Fundamentals offer no clear price direction."

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Pound calm for now


Early today the GBP, after an explosive late session was seen more or less at the same levels. The devastating defeat of the Prime Minister’s Separation deal created rare volatility for the popular GBPUSD.

Yesterday the Parliament voted 432-202 versus PM's deal. That was the worst political failure for an administration in the modern history of Britain.

GBP fell more than 1% versus the greenback yesterday but retraced back following the vote. The pound lifted at $1.2860 after spinning between a low of $1.2660 and a top of $1.2910.

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