Market Brief: Parliament set to finally pass Brexit deal

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  • Market update at 12:30 GMT: In FX, GBP and AUD were the strongest among major currencies, whiles EUR was the weakest. Stocks were higher. Copper was down, gold flat and silver higher. Crude oil was a touch lower.

  • Stocks have continued their Santa rally thanks to ongoing central bank support and receding risks of a full-blown trade war as the US and China work towards signing phase of their trade agreement. Germany’s DAX, which bucked the global rally yesterday, was among the top gainers in Europe this morning.
  • GBP has gained ground this morning, ending its poor run of form since the result of the election was announced last week. After falling heavily on renewed concerns over a hard Brexit, Sterling was supported this morning in part by short side profit taking and as UK GDP grew 0.4% in Q3 vs. previous estimate of 0.3%. Meanwhile BoE’s new Governor has been named: Andrew Bailey will take over from Mark Carney in March.
  • UK parliament is set to vote on PM Boris Johnson's Brexit deal today, expected around 14:30 GMT. After Johnson’s majority win at the election, there should be enough Tory support to pass the deal through following several rejections earlier in the year. If so, this will pave the way for the UK to officially exit the EU on 31st January. The UK will then enter a transition period and will have 11 months to strike a trade deal before the end of 2020 deadline, or risk crashing out of the EU with no deal. There are growing doubts that this will not be enough time and the UK may well have to ask for an extension, despite Johnson insisting otherwise.
  • Also coming up:


 

 

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