Brexit battle dominates amid US holiday

The European markets have started the week in a relatively positive fashion, with the US markets shut as the country celebrates Presidents Day. Will the House of Lords Brexit debate produce a roadblock to the timetable?

• European markets start week on positive note

• House of Lords Brexit discussion dominates amid US holiday

• Trump’s state visit also on agenda in Parliament.

European markets have kicked off the week in a pretty bullish fashion, with the likes of the FTSE and DAX leaving last week’s indecision behind. However, volumes are likely to be depressed as the US celebrates Presidents Day. Trump has certainly ensured he remains front and centre of the news amid claims of a non-existent attack in Sweden. For markets, the focus remains on the impending release of Trump’s self-proclaimed ‘phenomenal’ corporate tax cut.

The UK’s focus falls on the House of Lords today, as the Brexit debate continues to dominate. Whilst Parliament decided it was largely down to the Prime Minister to decide when to enact article 50, there are fears that the House of Lords will attempt to make amendments. Given the holiday over in the US, traders will be keeping a keen eye on the pound for any significant volatility as the House of Lords discusses whether to approve the Brexit bill.

It seems fitting that the House of Commons decided to host a discussion over the merits of Trump’s proposed visit to the UK today, considering it is Presidents day in the US. Given Theresa May’s rebuttal of the petition to have Trump’s invite revoked, there is unlikely to be any major shift in the government’s position on this. However, with the US representing one of the UK’s most crucial trading partners in a post-Brexit world, there is likely to be a pretty heavy debate over the benefits of overlooking Trump’s controversial views just to serve our own interests.

Ahead of the open we expect the Dow Jones to open 17 points higher, at 20,641.