May's Brexit deal, approved or not approved?

Daily Analysis - 27/11/2018

Possible scenarios if Brexit deal gets rejected

Last week the European Union accepted UK's Brexit plan. Now, is the Prime Minister Theresa May capable of convincing her Parliament to give the ok on the agreement. As far we know Theresa May has the acceptance of only 13 members of parliament. This can be translated as a probable defeat for the prime minister as they only need seven to vote against the government's proposal. The projections are that Theresa May's proposal will be blocked in a vote. Now, what actually will happen if the deal is defeated? First of all the UK should leave the European Union without a settlement on 29 March 2019, also when they reach that stage MPs cannot reverse the no-deal Brexit. Nevertheless, UK will have three weeks to propose various suggestions. For example, a second referendum will be the most probable of scenarios, or a negotiated no Deal, This is a situation where the UK would need a one year extension of the membership before leaving the EU – but would come at a price from European Union for a paid one-year expansion of the membership before going out of the EU.

Asia markets trade higher

On Tuesday Asia exchanges went higher while traders anticipate the meeting between President Donald Trump and Chinese leader Xi Jinping. Greater China exchanges closed today's trading session mixed. Hong Kong's Hang Seng Index was exchanging at a deeper level by about 0.44% in the afternoon while the Taiex, that includes the performance of listed stocks on the Taiwan stock exchange, ended higher about 13.20 points, at 9,778.60, after being down about 0.69% earlier today. South Korea's Kospi improved 16.39 points, to 2,099.40. Japan's Nikkei 225 climbed about 140.39 points, about 0.62% approximately to 21,952.38 as the Topix index scored 11.93 points to 1,644.15.

Dow gained more than 300 points

Smead Capital Management CEO stated that Technology stocks can go under as long as the rest of the economy does well.

On Monday the U.S. stocks rose while shares of some tech businesses bounced back following the huge declines last week, while General Motors shares climbed. The Nasdaq Composite outperformed, climbing 2% to end at 7,081.80.

The Dow Jones Industrial Average climbed about 354.25 points to 24,640.22, registering its largest increase since the beginning of the month, while the S&P 500 advanced 1.5% to close the day at about 2,673.45.

Gold edges lower

The dollar index, that measures the USD versus a box of 6 major currencies, was strong at about 97.00.

Spot gold fell about 0.1% at $1,220.80 per ounce while U.S. gold futures were in a range of $1,222.0 per ounce.

On Tuesday Asian shares struggled to increase a global retrace after U.S. President appeared to suppress the beliefs of a trade peace with China, discouraging the risk appetite over the country. Today Gold prices crawled while the greenback steadied due to fears of a retardation in global economic growth and growing depression due to a probable worsening of U.S-China trade fight before the G20 meeting.

Upcoming Events

Time
Currency
Event
Forecast
Previous

15:00 GMT
USD
CB Consumer Confidence (Nov)

Ready to trade
Open Account
Share:
Next: The UK and EU agreed on a draft plan