Brexit Referendum Restarted! Can anything be decided!? ~January 29 Highlights and Event Schedule~

Yesterday, results from US companies Caterpillar and Nvidia were weak, and stock prices fell sharply. They weighed on the three major US stock indices, creating a risk-off sentiment. With big events such as the FOMC, the UK Brexit plan vote, and US-China trade negotiations on the horizon, extreme moves are difficult, resulting in overall small movements.

◎ Today's Highlights

1) Re-vote on the UK Brexit Plan

Since the vote on the Brexit plan last held was defeated, a vote on the revised plan (Plan B) is planned. This is also expected to start around 4:00 a.m. Japan time on the 30th. Several proposed motions are up for votes, and voting will proceed from 4:00 onward. Until the votes are taken, I think there will be limited movement. While I would like to wait for the voting results, it seems there is a move toward avoiding a no-deal Brexit.

2) US Corporate Earnings and Government Shutdown End

Earnings reports from US companies weighed on the market, resulting in a steep decline in the three major US indices and a risk-off flow. Apple’s earnings release is also scheduled for today. Apple is often cited as one of the causes of the flash crash in early January due to revenue downgrades.

Although provisional, a budget agreement has been reached. The government shutdown has ended, though the shutdown is time-limited until the 15th. If a resolution for the Mexico border wall funding is not reached by then, President Trump has said another government shutdown could occur. Also, earnings releases that were postponed during the shutdown will be watched closely. For economic indicators, while they say to stagger the release dates, the consolidated release may cause some confusion.

3) Australia CPI (Consumer Price Index)

With the AUD under pressure and at a low level, the quarterly CPI (Consumer Price Index) will be released. A poor result could lead to a large drop. Caution is needed.

◎ Today's Economic Event Schedule

January 29 (Tuesday)

09:30 AUD NAB Business Confidence

16:45 EUR France Consumer Confidence

22:00 HFUHungary Policy Rate Announcement

January 30 (Wednesday)

UK Parliament, Alternative Plan Vote

US-China Trade Negotiations

00:00 USD Consumer Confidence

04:00 GBP Voting Starts

09:30 AUDQuarterly CPI (Consumer Price Index)

◎ Weekly Schedule

What will happen?! The 2nd UK Brexit Plan Vote! ~ Focus and Schedule for the Week of January 28 ~