Political & Brexit Turmoil Takes Centre Stage

UK politics stole the limelight last week as a reckless number of resignations from the Conservative Party casted doubts over Prime Minister Theresa May’s Brexit deal and leadership. Just hours after unveiling her draft Brexit agreement to her party, MP’s including Brexit Minister Raab resigned.

In turn, Thursday saw Sterling face the largest one-day decline against the Euro since October 2016. Bond markets were also shocked, with yields on the 5-year bond contract record its biggest decline since the Brexit vote.

More recently, PM May stated toppling her would risk delaying Brexit and she would not let talks of a leadership challenge against her distract her from a critical week of negotiations with Brussels. To challenge the leadership of the Prime Minister a confidence vote must take place, where lawmakers of the party in power submit votes of ‘no confidence’. The Threshold for triggering a confidence vote is 48 and is yet to be met. May also said changing leadership at this point isn’t going to make it easier.

Taking a backseat, but still impacting markets, were trade tensions between the US and China. Conflicting tones from US President Donald Trump and Mike Pence didn’t provide a clear signal for global asset classes.

In addition, US Federal Reserve members highlighted risks from a global economic slowdown and has markets wagering on whether the US rate hike cycle will soon come to an end.

In the energy space, WTI and International Brent Oil staged a rebound after taking a hammering over recent weeks as well as going into contango. The black gold pared some its losses on the back of the possibility that OPEC members could cut production to prevent another global oil glut.

UK Data for the week ahead


Time (GMT)



previous read

Tuesday 20th


BoE Governor Mark Carney Speaks





Inflation Report Hearing





CBI Industrial Trends Orders



Wednesday 21st


Public Sector Net Borrowing





Public Sector Net Cash Requirements



Thursday 22nd


BoE MPC Saunders Speaks








Note: Brexit remains the forefront for global markets, especially, UK markets.


© Akif SH. Din, AGORA-direct Limited, 19/11/2018


The content of this text is deemed reliable, but the accuracy or completeness of the of the information therein is not guaranteed and AGORA-direct Limited shall not be liable for a delay if this information is not kept up to date. Although Agora-direct Limited believes that all information in this text is accurate, Agora direct Ltd. shall not be liable if this is not so. The information must not be suitable for everyone and should not be construed as an offer, recommendation, advice, call for action, or advertisement intended or designed.

This site uses cookies, which are used for an improved use of the website, as well as the analysis for further improvement. By continuing to use this website, you agree to the use of cookies. You also agree to our Terms and Conditions for Website Usage and our Disclaimer. More information can be found in the privacy policy and legal notes.