GBP traders await key Brexit votes, equity markets slide

5:41 PM 18 October 2019

  • Chinese GDP growth slows in the third quarter

  • More MPs express support for Boris Johnson’s deal

  • Coca-Cola and American Express beat revenue estimates

  • Stock market indices decline on the final trading session of the week

  • NZD is the strongest in G10 basket while CAD is the weakest

Chinese data disappoints

Release of the Chinese GDP data was the key point of the Asian session. World’s second biggest economy continues to lose momentum with Q3 GDP growth slowing to 6% YoY from 6.2% YoY in Q2. Weakish investments were to huge extent responsible for this slowdown. A set of monthly indicators for September was released as well. Those came mostly in line with industrial production coming in much higher than expected.

Key Brexit votes to be held this weekend

EU and UK authorities agreed on the Brexit deal yesterday and trading in GBP today was all about MPs switching between declarations of backing or not backing the deal. The UK House of Commons will hold a range of votes on amendments and the deal itself tomorrow. It looks like Boris Johnson does not have required support so far. However, given that around a dozen MPs switched to the Prime Minister’s side today, everything is still on the table.

Wall Street earnings season in full swing

Another two members of the Dow Jones (US30) index reported their Q3 earnings today - Coca-Cola (KO.US) and American Express (AXP.US). Both companies managed to beat revenue estimates but Coca-Cola fell short of earnings forecast. So far the Q3 earnings season looks promising - 7 out of 8 Dow Jones members managed to beat revenue estimates while 6 showed higher-than-expected earnings.

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