One of the most important events that will have an impact on the financial markets today is the Brexit vote that will take place in the United Kingdom. After Theresa May’s deal failed to gather enough support in the vote two weeks ago, the Prime Minister spent a week speaking with MPs, trying to amend the deal in a way that would make it more appealing to Parliament. Today in the evening there will be a new vote on the changes proposed by May. If her deal fails again, the United Kingdom is in for even more uncertainty surrounding Brexit.
Meanwhile, in the United States the Federal Reserve is starting a two-day policy meeting today. This will offer the Fed its first opportunity to adjust interest rates for 2019. However, right now analysts don’t expect to see a change in the interest rate. Fundamentals in the States are strong, but the Federal Reserve’s Chairman, Jerome Powell, has stated that interest is more or less neutral right now and overhiking might be problematic, considering the global economic slowdown. Some investors don’t even expect a single increase this year, but hopefully this week’s meeting will shed more light on what the Fed is planning.
