Market Brief: BoJo’s Brexit Setback Hits Sterling

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

  • Parliament voted down Boris Johnson’s Brexit “programme motion timetable” 322-308, meaning that the PM must request an extension, which the EU is likely to grant. Johnson has been outspoken that he still intends to have the UK leave the EU by the end of the month, though he may accept a “technical” extension to work out any sticking points.
  • FX: The yen was the day’s strongest major currency after a late shift to risk-off trading. The pound was the day’s weakest major currency.
  • The Canadian dollar initially ticked lower as traders digested the result of last night’s election, but the currency ultimately finished in the middle of the major currency pack, helped along by rising oil prices.
  • US Data: Second-tier reports were mixed, with the Richmond Fed survey beating expectations but existing home sales coming in a bit soft.
  • Commodities: Oil gained nearly 2% on the day on a report that OPEC was considering deeper production cuts at its December meeting due to weaker global demand forecasts. Gold was essentially flat.
  • US indices closed marginally lower on the day, with the tech-heavy Nasdaq leading the late afternoon selloff.
  • Energy stocks (XLE) were the strongest major sector again today, while Technology (XLK) brought up the rear.
  • Stocks on the move:
    • Biogen (BIIB) exploded 26% higher after the company found data to help revive a potential blockbuster Alzheimer drug.
    • McDonalds (MCD) shed -5% after missing earnings estimates for the first time in two years before the bell today.
    • Facebook (FB) fell -4% on the day as more states joined an antitrust probe against the company. Now, 45 states, Guam, and the District of Columbia are working with the New York-led investigation. The company reports earnings next week.
    • Procter & Gamble (PG) gained 3% after the company reported solid earnings and raised its guidance for 2020.
    • Toy maker Hasbro (HAS) shed -17% after reporting disappointing earnings on the back of US-China trade tensions.
    • Under Armour (UA) rose 7% on news that the company’s long-time CEO Kevin Plank was stepping down.
    • Snapchat (SNAP) reported a loss after the bell today. The stock is trading -4% lower in volatile after hours trade as of writing.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.