Monday’s trading session was an exceptionally volatile one, stock markets led the way significantly lower while FX markets essentially tread water. Anxiety has built up regarding the Fed’s highly expected 4th interest rate rise of 2018 which is amongst a developing backdrop of weaker economic growth across the globe in 2019. The next couple of days could continue in this fashion as participants identify the punchbowl of central bank accommodation – with low interest rates and printed money, it’s certainly running out.
Yesterday’s Brexit headlines were dominated by news that Jeremy Corbyn is preparing to table a motion of no confidence against the beleaguered Prime Minister, Theresa May. The rules and procedure around an opposition leader pushing such a motion through are different to that of a PM’s own MP, hence it may be a few days before it’s known if and when such a vote can take place. First things first, the PM must schedule time for a debate to take place on the matter, something which appears is being stalled.
Today’s economic calendar sees German IFO numbers released in the morning. These evaluate the health of the German business sector through surveys conducted. From the US – building and manufacturing data will be released in the afternoon. Finally, the evening session will see a trade balance report from Japan.
Written by Viv Savani. 8:51am, December 18th 2018
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