- No News
- GBPUSD is ranging towards the top of 1.28 range as we move closer to the vote and rumours keep surfacing about the necessity to delay the Brexit date beyond March to get the key 7 bills through parliament.
- Theresa May has said that is more likely that we do not have a Brexit rather than a no-deal divorce, this is a tactic to ensure the vote goes through as the fallout of a no-deal could entice MP’s to oppose Brexit altogether
- The EU is preparing to delay Brexit until at least July after concluding that Theresa May is doomed to fail in getting her deal through parliament. The country’s 29 March deadline for exiting the EU is now regarded by Brussels as highly unlikely to be met given the domestic opposition facing the prime minister and it is expecting a request from London to extend article 50 in the coming weeks. A special leaders’ summit to push back Brexit day is expected to be convened by the European council president, Donald Tusk, once a UK request is received. EU officials said the length of the prolongation of the negotiating period allowed under article 50 would be determined based on the reason put forward by May for the delay.
- Oil slipped to around $60 a barrel on Monday after data showed weakening imports and exports in China, the world’s second-largest oil consumer, raising the prospect of a slowdown in fuel demand. China’s exports fell by the most in two years in December while imports contracted, official figures showed, pointing to further weakness in what is also the world’s second-largest economy. Brent crude, the international benchmark, fell 50 cents to $59.98 a barrel by 0932 GMT, trading as low as $59.37 intraday. U.S. crude slipped 41 cents to $51.18.
- Asia Pacific equities declined across the board after Viacom announced that it may be selling its stake in Chinese operations. The mass media conglomerate cited issues with scaling its business in China and may have been influenced by recent difficulties for American corporations operating in Beijing in the wake of the ongoing US-China trade war.
- Market sentiment soured as a result of this news, with the Hang Seng Index losing more than 1% as the Chinese technology giant Tencent led the decline, dropping as much as 8% during Monday’s trading session. Viacom’s statement now throws the future of existing large-scale partnerships with Tencent into question.
Australia & New Zealand
- No News