UK politics amongst market movers today – Danske Bank

Analysts at Danske Bank note that today in the UK, the House of Commons will vote on both a motion to call for a snap election and the Brexit extension bill.

• “Given that the opposition has said they want the latter to come into law before supporting a general election, we think the former will be voted down (requires two-third majority!) and the latter will be approved. We still think we are heading for general election but do not think it will be called for until next week.
• At 10:30 today incoming ECB President Christine Lagarde will face questions from the European Parliament on her appointment. While she signalled policy continuity last week, markets will look out today for more clues on her monetary policy views. ECB Chief Economist Lane will also speak today.
• As the Fed enters the blackout period on Saturday, it is going to be interesting to hear from NY Fed President Williams later today. We think Williams (voter, neutral) will support the message from Clarida and Powell, who stated global (political) uncertainty has risen and the global growth has slowed further since the initial cut in July. We do not think Williams will pre-commit to more easing though. Powell is speaking on Friday.”