All eyes are on London this morning as Parliament gets set to vote on Theresa May’s Brexit deal at 7 PM UK time. Expectations are for a defeat; the question is by how many votes and will May resign in the aftermath. Yesterday’s industrial figures for the eurozone were weak, to say the least, with a 3.3% reduction year on year after October’s 1.2% increase. CPI’s today begin with France where they’re steady and the government budget is currently in a 95bn euro deficit. That’s up 10 from October.
Equities rose throughout Asia overnight despite the uncertainty in global markets. Most were energized by Chinese officials said they were cutting taxes and providing relief to help companies weather the economic slowdown. Overnight, Japan’s machine tool orders retreated another 18.3% – that’s 1½ more than in November.
US indexes ended lower last night as Chinese trade data provides more proof of a global slowdown. British finance multinational Standard Chartered estimates, in a report published yesterday, that China’s GDP will overtake the US next year. Within a decade, expect India to follow suit, pushing the US even FURTHER down the list. The government shutdown, now in its 4th week, is affecting airline security and about a quarter of all federal services.
Oil is back up above the $51 mark after performing a double bottom in the past 24 hours. OPEC ministers are scheduled to vote on additional production cuts at their Vienna meeting next month, especially since these don’t seem to have much
Citi opened our earnings season yesterday with a $ ½ bn miss on revenue but a higher EPS than expected – a dollar 61. JP Morgan will continue the data feed today after the opening bell. We’re expecting 2.21, which’ll be a 25% increase year on year on revenues that are up 5.7%. The bank has exceeded expectations regularly for the past 2 years.
In about 2 hours we’ll be hearing from the EU on the region’s trade balance, and at 1:30 GMT – US producer inflation. At 9:30, it’s the API’s turn to push oil one way or the other, and at 1:30 tomorrow morning – house prices in China.