Boris Johnson Tries to Drain Brexit Swamp

Yesterday, with U.S. and Canadian markets closed overnight for Labour Day, it was British Prime Minister Boris Johnson that provided a bursts display that Guy Fawkes would be proud of.  With Parliament before being suspended for a week, PM Johnson has threatened to call a general election on October 14th if Parliament passes legislation to derail his Brexit strategy today.

On Sunday, he made announcement that Tory MPs who vote against the government on Brexit will be expelled from the parliamentary party and barred from standing for their seats as Conservatives should an election happen.

With electoral uncertainty and the forecasts of a hard Brexit both rising aggressively, the British pound, falling 100 points to 1.2065 was punished. Despite, international equity investors were overjoyed at the pound’s fall, swooping in to scoop up U.K. blue-chip stocks largely cheaper in the dollar and euro terms than the day before. The FTSE 100, making it the best-performing market in Europe on the day by far, rose 1.03%.

On the other hand, after a quiet holiday-affected session, U.S. equity futures slid slightly lower on thin volumes overnight.

Asia will be focusing on the RBA rate decision at 1230 SGT. Ahead of this, retail sales and the current account are two other key Australian data points. A lower print from retail sales, in particular, would add to the general gloom of recent Australian data, increasing the calls for further RBA easing. The RBA keeping their powder dry for rainier days ahead, is unlikely to grant the doves their wish today, preferring to stay on hold with an easing bias.

Vietnam and Malaysian Market PMIs, continuing the poor regional showing by the PMIs yesterday, have just been released lower than forecast

South Korean, boom this morning, posted a record low of zero percents Q2 GDP was revised lower to 2.0%, increasing the odds of further easing by the BoK at their next meeting.

Investors are receiving confirmatory signs that Asia is slowing on trade by China and the U.S.

By Niharika Chaturvedi

Niharika Chaturvedi, with her 2 year experience and a Master's in Mass Media and Journalism has been working with us on Buisness and General News Section. She is also a freelancer blogger for various known sites and plans to start her own Travel Blog soon.

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