The Big day for Brexit is here

Daily Analysis - 15/01/2019

The historic Brexit vote will determine the winner


Mays deal is not going well. The parliament lost its trust and now she is facing strong opposition from the house. Nevertheless, the prime minister continues to have the confidence of getting further support from the EU on her Brexit deal. As for now, EU showed a slight willingness to give May the legal protection that she is looking for. Today the voters will decide the winner and if the agreement passes, UK and the EU will start preparing for the transition period from March 29. Still, discussions between the U.K. and the EU would, however, continue and they will try to determine a future relationship. Mays deal requires the support of 320 lawmakers, and that is half of the 639 Members of Parliament that vote in Westminster. On Monday the House of Lords rejected the deal.

Asia markets are waiting the Brexit outcome

On Tuesday Asia markets generally were higher notwithstanding the ongoing anxieties covering economic retardation in China. That discouraged investors risk appetite at the beginning of this week following China's released trade data. China exchanges increased while Hong Kong's Hang Seng index grew about 1.8 %. The mainland Chinese markets rose in midday, and the Shanghai composite got more than 1.4%. The Kosdaq rose more than 0.9% while South Korea's Kospi advanced more 1.5 %. In Japan, the Nikkei 225 scored 0.9%.


FED comments about pausing the hikes hold Gold steady

On Tuesday Gold was steady. The reason was the support by investor anticipation on the fact that FED may pause the hikes, for now, that sparked also a retracement in Chinese stocks because of investor interest in riskier assets. The U.S. gold futures were stable at $1,291.2 an ounce while Spot gold fell about 0.1% lower to $1,290.78 per ounce. Now regarding the popular greenback, it is still weak because of the increased expectations that the Fed will hold off on increasing rates for 2019 due to retardation in global growth.


Oil rose on supply cuts

Oil increased about 1% on Tuesday due to supply reductions that are driven by Russia and producer club OPEC. West Texas Intermediate crude futures rose to $51.07 per barrel while International Brent crude oil futures were also up at $59.64 per barrel from their last conclusion.

U.S. bank J.P. Morgan said in a report. "The impact of OPEC+ (OPEC and others including Russia) cuts, Iran sanctions and lower month-on-month growth in U.S. production should help to support oil prices from current levels."


Upcoming Events

  • Time
  • Currency
  • Event
  • Forecast
  • Previous
  • 13:30 GMT
  • USD
  • PPI (MoM) (Dec)
  • -0.1%
  • 0.1%
  • 15:00 GMT
  • EUR
  • ECB President Draghi Speaks
  • Tentative
  • GBP
  • UK Parliament vote on Brexit deal

This website uses cookies to ensure best possible user experience. Read more