Markets continued to digest Tuesday nights Brexit news yesterday. The lower house of UK’s Parliament voted in favour of giving Prime Minister Theresa May the power to trigger Article 50. The vote was overwhelmingly in favour of May and has now marked the beginning of the two-year process to allow the UK to exit the EU. Lawmakers will also get an early vote on the final agreement, as promised by May.
Germany, the powerhouse of the Eurozone, surprised markets yesterday with the release of Germany’s trade balance. Germany’s trade surplus for 2016 rose to €252.9bn, exceeding market expectations and setting a new record. The data release comes a week after US President Donald Trump’s top trade adviser accused Germany of exploiting a “grossly undervalued Euro to its advantage”. Yesterday’s eye watering figure will continue to fuel the conflict with the US and the EU.
We finish the week with high tier data released from both the UK and US. Firstly, manufacturing production in the UK is forecast to drop from last month’s seven month high to 0.3%. Following this, this afternoon the US release the University of Michigan Consumer Sentiment, expected to register a healthy 97.9.