Theresa May Survived a No-Confidence Vote, ECB Meeting in Focus

Market Reviews

Australian dollar is trading as the strongest one for today, followed by US dollar and euro. Japanese yen is trading as the weakest one. The British pound is the second weakest, as yesterday’s growth is losing momentum.

The pound was supported after UK Prime Minister Theresa May survived the leadership challenge. 200 Conservative MPs voted in support for May in the no-confidence vote. 117 voted against her. That’s way more than enough to secure her place as Prime Minister. Theresa May will go to Brussels for the two day EU summit today.

Global stocks are trading higher, as risk sentiments improve. DOW closed up 0.64%, S&P 500 gained 0.54% and NASDAQ added 0.95%. In Asia, Nikkei added 0.99%, Hong Kong HSI gained 1.33%, China Shanghai SSE increased 1.60%, Singapore Strait Times rose 0.46%.

It’s reported that China has already purchased more than 1.5m tonnes of US soybeans this week, the first major purchase in six months. And of course there were reports that China is considering to lower auto tariffs from 40% to 15%. This is a positive sign in US-China trade relation.

The European Central Bank will hold its monetary policy meeting today. ECB is widely expected to keep benchmark interest rate unchanged at 0.00%. It is also expected to announce about completion of its asset purchase program. On Thursday, the ECB also will publish its newest staff projections for economic growth and inflation for the next three years.

Swiss National Bank will also have its meeting. SNB is also widely expected to keep the Sight Deposit rate unchanged at -0.75%, with 3-month Libor target range held at -1.25 to -0.25%. Some traders might look for hints of a rate hike in 2019.