Sterling Volatility Spikes on Impending Brexit Vote | China to Introduce Sweeping Tax Cuts
Published January 15, 2019
authorities in Beijing promised more measures to help the slowing economy, as
the government looks towards tax cuts on a broad scale and a more supportive monetary
policy shift. Equities in the region reacted positively to the announcement,
rebounding from losses on Monday that was driven by disappointing trade data.
volatility has touched session highs as Prime Minister May faces defeat in
today’s parliamentary vote on her deal to exit the European Union. If the vote
loses by a margin larger than 100 votes, May could face a leadership challenge
or a new general election. The vote begins at 2:00 pm Eastern Time.
US PPI data
will be released this morning with core wholesale inflation rate expected to
rise to 3%. If markets are strongly considering the Federal Reserve’s
communication that data dependence is a focus moving forward, then such numbers
will be cause for pause with the recent dovish shift.
president Draghi is making his first appearance of 2019 at the European
Parliament. Draghi is in parliament today to discuss broader euro area growth
outlook and weakness of the region’s largest economy. This comes as the ECB
contemplates whether it has the capacity to initiate raises to interest rates.