Theresa May’s Brexit deal vote in focus

Theresa May’s Brexit deal vote in focus

The future of the Brexit deal is going to mark its path this week. It will receive a parliamentary vote which is programmed to take place tomorrow. A scenario that includes the rejection of the deal will probably send Theresa May running back to Brussels. She will have only 3 days until the deadline and this probably will not be adequate to stop a scenario for a snap general election. Now regarding the GBP economic data: on Wednesday, December inflation numbers while the retail sales figures are due for the end of the week on Friday. What we can expect about the data is to probably be neglected due to the fact that we have a more important event, the Brexit deal parliamentary vote on tomorrow which will create uncertainty and fear for the GBP.

The Week that was

Last Thursday the FED, Chairman Jerome Powell stated that he is "very worried" regarding the growing U.S. deficit. He stated that this obstacle is not recent and that they need to fix it eventually. “It’s a long-run issue that we definitely need to face, and ultimately, will have no choice but to face," he said. On the same day stocks improved, but gains were capped and the reason for that is the fact that anxieties that the U.S. government shutdown may last longer than expected pressed on stocks. The Nasdaq Composite advanced 0.4% to 6,986.05. The S&P 500 rose 0.4% to 2,596.63 registering five-day winning streak.

Main Focus This Week

The main focus this week will be also on the U.S – China Trade War. In order to keep the confidence that the two economic giants gave to investors with their progress, the Leaders need to feed the market with fresh updates. The previous boost gave some support to the general financial markets. On the other hand, the U.S Government Shutdown continues to be active and now it registered as the longest government shutdown in the history of the U.S. Earnings season also is an important event that could be exciting for the stock markets to see if the bears were correct regarding their view. The first important announcement will be on Monday with Citigroup, and on Tuesday JPMorgan Chase & Co and Wells Fargo publishing their conclusions.