British Prime Minister Rejects Calls to Delay Brexit - APAC Update

. 2 min read

This morning British Prime Minister Theresa May rejected calls to delay the UK’s departure from the European Union, and said her Plan B is to have Parliament approve her Brexit agreement after securing changes to a contentious Irish border measure.

May said she had “heeded lawmakers’ concerns over the Irish backstop,” and said she will be “talking further this week to colleagues … to consider how we might meet our obligations to the people of Northern Ireland and Ireland in a way that can command the greatest possible support in the House.”

Lawmakers are due to vote on May’s Plan B and any possible amendments on the 29thJanuary. Our Brexit Barometer readings remain mired in the neutral region until at least that time.

It’s been a subdued start to the trading week with the US enjoying a long weekend however the NZD remains under pressure ahead of tomorrow morning’s inflation report.

NZD USD opened at 0.6728 (midmarket rate) this morning.

There was little reaction to yesterday afternoon’s China data with Q4 growth hitting 6.4% y/y (in line with expectations). The rate of growth was marginally slower than the 6.5% expansion recorded in Q3 and puts full-year growth for 2018 at 6.6%, the slowest annual pace of expansion since 1990.

On a more positive note, China’s industrial production and retail sales reports for the month of December exceeded expectations with Industrial production increasing by 5.7% y/y (exp +5.3%) and retail sales rising by 8.2% y/y (exp +8.1%).

In other markets,

Global equity markets are mixed, Dow Closed, S&P 500 Closed, FTSE +0.03, DAX -0.62%, CAC -0.17%, Nikkei +0.26%, Shanghai +0.56%.

Gold prices are unchanged trading at  $1,280 an ounce. WTI Crude Oil prices are have inched higher, up 0.4% trading at $54.23 a barrel.

Midmarket Rates

NZD USD     0.6728    -0.3%

NZD EUR     0.5919    -0.4%

NZD GBP     0.5218    -0.5%

NZD JPY      73.75      -0.4%

NZD AUD    0.94        -0.1%

NZD CAD    0.8945    -0.1%

GBP NZD    1.9164       0.5%

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