Mario Blascak, PhD
Independent Analyst
What you need to know before markets open
Main themes:
- The UK Prime Minister Theresa May survived a no-confidence vote on Wednesday in line with expectations avoiding political chaos in the final stage of Brexit negotiations.
- ECB Governing Council member and Austrian central bank Governor Ewald Nowotny said it is extremely important that we get a solution and clear answer on Brexit as soon as possible.
- Brexit: The EU is reportedly ready to delay withdrawal until next year.
- Ther Eurozone inflation is expected to remain well below the ECB’s 2% inflation target in December on oil price drop.
Europe
- German inflation remained stable at 1.7% over the year in December.
- The Eurozone inflation is expected to remain below the ECB target of 2% in December rising 1.6% over the year while core inflation is set to remain stagnant at 1.0% y/y.
UK
- The UK Prime Minister Theresa May survived a no-confidence vote on Wednesday in line with expectations avoiding political chaos in the final stage of Brexit negotiations.
- The Bank of England Governor Mark Carney said the market view of Brexit vote most clearly expressed in FX market with Sterling rebound would appear to reflect some expectation that process of the resolution would be extended and the prospect of no deal had diminished.
- The UK inflation decelerated to 2.1% over the year in December as the oil prices dropped sharply in the final quarter of 2018 with core inflation accelerating to 1.9% y/y.
US
- The US weekly jobless claims are seen rising 220K in the week ending January 10.
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