EU market focus on Brexit

Daily Analysis - 17/01/2019

EU is expecting the “Plan B” from May

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After she survived from the no-confidence vote, the Prime Minister of the United Kingdom is focusing on the "plan b".

Market focus is largely adjusted to the newest Brexit progress. Mrs. May managed to defeat the parliamentary proposal by 19 votes.

May after receiving the votes required to dodge a general election, encouraged other party administrators to sit down for constructive talks to attempt to crush the current delay on a Brexit separation agreement.

On Monday, May is expected to give an outline for a "Plan B”. Investors are generally anticipating Westminster to push for an expansion of Article 50.

GBP is steady for now


On Tuesday after the prime minister of the United Kingdom remained in power by defeating the no-confidence vote, the GBP remained stable. May shortly after encouraged other party heads to come to the table and attempt to crack the deadlock on a Brexit withdrawal agreement that was previously rejected by the parliament. Yukio Ishizuki, senior currency strategist at Daiwa Securities said “It’s unlikely there will be big changes to May's plan, so parliament is likely to oppose it as well."

GBP was at 88.40 pence per euro, hanging close to almost a 49 day top of 88.36 reached through the earlier trading session.

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Oil prices dipped today


On Thursday Oil prices dropped while U.S. crude production immediately approached a unique 12 million barrels daily. U.S. West Texas Intermediate crude futures were down at $52 per barrel about 0.5% from their last close. International Brent crude oil futures fell 34 cents about 0.5% at $60.97 per barrel. ANZ Bank said in a note. "While (U.S. crude) inventories fell slightly more than expected, there was a large build in gasoline inventories. This sparked concerns of low demand in the United States.

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DOW register gains more than 100 points


On Wednesday equities advanced while Traders supported the solid quarterly earnings from the main banks including Bank of America and Goldman Sachs. Goldman Sachs registered exceptional quarterly profits, driving the stock higher more than 9.5%. That was its largest single-day increase since 2009. Bank of America climbed more than 7.0% after reaching a record quarterly value. The S&P 500 advanced 0.2% to end the day at 2,616.09 led by gains in financials. The popular Dow Jones Industrial Average climbed more than 141.50 points to 24,207.10 while the Nasdaq Composite rose 0.15% to 7,034.68.

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