More Brexit uncertainty as MP's take no deal off the table
Once again there was more Brexit drama last night as the House of Commons voted to take 'no Brexit' off the table. This means a deal has to be negotiated before we leave the EU. The obvious next step is to extend article 50 to allow a longer negotiation period but Theresa May is looking to bring her deal back to the house in a bid to sway some ministers as some of them may not want to extend the time horizon as prolong the process. Once again Brexit is up in the air, although, it is good to have some volatility.
Equities in the US closed higher yesterday as risk sentiment returned to markets. This led equities in the Asia Pac region to start well but Chinese data dampened sentiment as industrial production hit 5.3% vs the expected 5.9% and the unemployment rate also mixed expectations. The Nikkei 225 closed 0.04% higher, ASX 0.30% and the Shanghai Comp. fell 1.20% after the aforementioned for data.
In commodities markets, Brent and WTI are still trading higher off the back of the draws in both DoE's and API's this week but there has been news and positivity surrounding OPEC too. Today we get the latest OPEC monthly report where it would be good to see the latest supply and demand figures.
After the poor data overnight base metals struggled. After two days of decent price action copper is down half a percent this morning. The real test remains at the previous consolidation support at $2.84/lb and we are a long way off at $2.90/lb.
Gold also dropped off overnight as risk sentiment improved. The yellow metal now trades just above the $1300/oz level and there is a potential lower high in the making although it would take a stronger USD and stock market to push it lower.
Today we are on the lookout for the OPEC monthly report, US export price index data, US new home sales, comments from BoC's Wilkins, ECB's Nowotny and Lane, another HoC Brexit vote and Steve Mnuchin's budget testimony (US).